GoFundMe Aid Could Stymie Wildfire Victims From Getting FEMA Funds

LOS ANGELES, CA — As massive infernos continue to smolder in Los Angeles, countless GoFundMe campaigns have cropped up to help Angelenos who have lost their homes, businesses, schools and even loved ones.

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However, days after thousands of online fundraisers began, the Federal Emergency Management Agency is warning wildfire victims that those fundraisers could limit or disqualify them from federal financial relief.

"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," according to a Tuesday video posted to social media by FEMA.

For example, if a person posts on GoFundMe that they are raising funds for a vehicle that was damaged during a wildfire, FEMA says it cannot assist in additional funds for the car.

"We know this can be frustrating when you are trying to manage so much all at once, that is why we encourage you to carefully consider how you describe your needs when creating a GoFundMe page,” FEMA said.

Thousands of onlookers across the nation have been eager to help raise and donate funds for a barrage of GoFundMe campaigns related to the fire.

“I feel connected in a strange way to all these people that I don’t know,” says Rachel Davies, a 27-year-old writer in New York, who went through hundreds of GoFundMe's wildfire campaigns. "Those stories will stick with me."

Shane Severtson, who lost his Altadena home in the Eaton Fire, told ABC10 that he fled the fire with only the clothes on his back. Severtson is one of countless who created a GoFundMe for his family. He has also applied for FEMA, but said he had no idea that crowdfunding would impact federal assistance.

“I’ve lost so much, and I just feel like I need all the help I can get,” he told the station.

FEMA says the agency can't duplicate benefits a disaster victim receives from another source.

Preliminary estimations to rebound Los Angeles from damages and economic crisis are hovering between $250 to $275 billion, according to AccuWeather — a staggering amount to recoup.

FEMA has received more than 53,000 applications for help and distributed $12 million for basic needs like food and lodging for those affected by the California wildfires.'

While FEMA requests that wildfire victims first reach out to their insurance company, the government aid is designed to help cover some of the needs that insurance doesn’t.

In addition to FEMA grants, the Small Business Administration offers low-interest loans to help individuals and businesses recover.

At least 12,000 structures have been destroyed, including homes, outbuildings, mobile homes, RVs, trailers, businesses, commercial properties and more. So far, some 63 miles of Los Angeles County have been decimated.

AccuWeather's latest estimate surpasses the damage and economic loss numbers for the historic and deadly 2020 wildfire season. What's more, the economic loss in LA has surpassed the devastating Maui wildfires of 2023, which were between $13 billion to $16 billion. And to further put the catastrophe into context, Porter says the LA Fires have surpassed the costly $225 to $250 billion estimate for damages and economic loss after 2024's Hurricane Helene.

"Tragically, lives have been changed forever in just a matter of minutes. Many families may not be able to afford to rebuild or repair and return," Porter said. "The recovery process will be extremely expensive and emotionally challenging in the months and years to come."

READ MORE: It Could Cost $250 Billion To Rebuild LA After Deadly Fires: Report