https://www.cnn.com/2025/01/15/business/gofundme-fema-help-limits/index.html

According to the article, more than $100 million has been raised for California wildfire victims on GoFundMe so far. But some of those fundraising efforts could limit the money that would be available through the Federal Emergency Management Agency (FEMA).

FEMA can provide financial assistance for those who lost homes, vehicles or possessions in a natural disaster. But it only can make funds available to cover costs not covered by other sources, such as insurance or donations like those that come through GoFundMe.

“We understand that recovering from a disaster is incredibly challenging, and many people turn to resources like GoFundMe,” said a FEMA official in a recent posting on social media platform X.

“GoFundMe can be a great way to cover immediate expenses, but it’s important to know that using it for certain purposes might affect your eligibility for FEMA assistance.”

“Consider How to Describe Your Needs”

“For example, FEMA might be able to help you to replace a vehicle that was damaged during the disaster,” the FEMA official continued. “However, if your GoFundMe page clearly states that the funds you’re raising will be used to replace your car, FEMA won’t be able to provide assistance for that specific need…We know this can be frustrating, especially when you’re trying to manage so much, all at once. That’s why we encourage you to carefully consider how you describe your needs when creating a GoFundMe page.”

Hundreds of GoFundMe pages have been set up for victims of the Los Angeles wildfires so far, many raising tens of thousands of dollars. A GoFundMe spokesperson referred questions about the effect those donations could have on government assistance to FEMA.

Input from FEMA Spokesperson

A FEMA spokesperson said that there is a wide range of assistance for fire victims available from the agency but confirmed that that help cannot duplicate assistance for those specific needs received from other sources.

“We review each application to ensure you receive the aid for which you are eligible,” said the statement from the spokesperson. “If you receive money from a GoFundMe page for a specific disaster-related expense — such as home repairs, funeral expenses or other emergency needs — you may not be able to receive FEMA aid for the same expense. For example, if you receive donations to clean up storm damage to your home, FEMA may not be able to also grant you financial assistance for home cleanup. We encourage all survivors to apply for assistance regardless so we can review your specific case.”

 

Discussion Questions

1. Explain the mission and purpose of FEMA.

FEMA is a federal administrative agency within the U.S. Department of Homeland Security. According to www.fema.gov, FEMA’s mission, succinctly, is “helping people before, during and after disasters.”

FEMA supports citizens and first responders to ensure that as a nation, we work together to build, sustain, and improve our capability to prepare for, protect against, respond to, recover from, and mitigate all hazards.

FEMA's purpose is to help people and communities prepare for, respond to, and recover from disasters and emergencies, including natural disasters like hurricanes and earthquakes, as well as man-made incidents like terrorist attacks.

For more information regarding FEMA’s mission and purpose, as well as its history, core values, and strategic plan, please refer to the website referenced above and in “Teaching Tip 2” of this newsletter.

 

2. Conduct some research on the FEMA annual budget. How much money is available for FEMA assistance on an annual basis?

For Fiscal Year 2025, FEMA’s total budget is approximately $28.7 billion (By comparison, the U.S. military’s Fiscal Year 2025 budget is approximately $849.8 billion). FEMA’s budget is allocated for the following purposes:

    (a) Operations and Support: This includes personnel compensation, benefits, and other operational expenses;

    (b) Mitigation: Funding for programs aimed at reducing the risk of disasters and minimizing their impact;

    (c) Preparedness and Protection: Investments in training, equipment, and other resources to ensure readiness for emergencies;

    (d) Response and Recovery: Funds allocated for immediate response to disasters and long-term recovery efforts;

    (e) Procurement, Construction, and Improvements: Budget for infrastructure projects, facility improvements, and other capital investments;

    (f) Integrated Public Alert and Warning System (IPAWS): Ensuring a robust system for public alerts and warnings;

    (g) National Continuity Program: Ensuring the continuity of government operations;

    (h) Strategic Partner Program: Collaborations with other agencies and organizations for disaster management; and

    (i) National Fire Incident Reporting System: Collecting and analyzing data on fire incidents; and

    (j) Financial Systems Modernization: Updating financial systems for better management and accountability.

 

3. Is there a way to circumvent the “dilemma” described in this article? If an individual were to seek to avoid facing this dilemma, would doing so be unethical? Explain your response.

The “dilemma” addressed in the article is perhaps best described by the FEMA official quoted in the article:

“… FEMA might be able to help you to replace a vehicle that was damaged during the disaster…However, if your GoFundMe page clearly states that the funds you’re raising will be used to replace your car, FEMA won’t be able to provide assistance for that specific need…(W)e encourage you to carefully consider how you describe your needs when creating a GoFundMe page.”

 

The FEMA official quoted above has not only explained the dilemma; they have also essentially proposed a solution: When simultaneously seeking GoFundMe contributions and FEMA disaster relief, simply do not describe the specific purpose for which you will use the GoFundMe contributions; instead, describe the GoFundMe assistance as “disaster relief for financial and property loss,” or other words to that effect. Obviously, this may in turn create an ethical dilemma—whether it is appropriate to receive two separate financial contributions to address the same loss, particularly if the collective funds would be more than enough to solve the problem.