From Hurricanes to Wildfires: The Power of Charitable Giving 

The rising frequency of natural disasters – hurricanes, wildfires, earthquakes, and disease outbreaks – has brought immense challenges worldwide. Recent events such as Hurricane Helene and the devastating Los Angeles wildfires underscore the profound human and economic toll these disasters leave behind. For individuals looking to support affected communities and make a difference, the question is not whether to give but how to do so effectively.

Strategic giving can help maximize the impact of your support, ensuring that aid reaches those in need while promoting long-term recovery and resilience. Here are the five essential strategies to consider when contributing to disaster relief efforts: 

1. Focus on cash donations. While physical goods like clothing and bottled water might seem helpful, they can overwhelm local infrastructures and divert resources from critical needs. Instead, cash donations enable relief organizations to purchase exactly what is required by the communities, often from local suppliers, which can help stimulate the affected economy. For those with a Donor-Advised Fund (DAF), remember that you can still make a charitable contribution of appreciated securities and then liquidate the shares inside the DAF to recommend cash grants for any of the 1.5 million IRS-approved public charities.¹  
2. Give unrestricted funding. Many organizations need flexibility to adapt to changing circumstances during a crisis. Unrestricted donations allow them to allocate resources to the most urgent needs, whether providing emergency shelters, medical supplies, or long-term rebuilding efforts. The Los Angeles wildfires and multiple hurricanes are reminders that the path of natural disasters can change quickly, and unrestricted donations help organizations provide aid without delays. 
3. Support local organizations. Local organizations often have the most accurate understanding of their community’s needs and can respond quickly and effectively. Before making donations, research local nonprofits, community foundations, or grassroots initiatives in the affected area to help ensure your contributions directly benefit those most impacted. 
4. Plan for the long term. While media coverage typically focuses on immediate response efforts, recovery often takes months or years. Consider supporting long-term rebuilding initiatives, mental health resources, or mitigation strategies like raising homes in flood-prone areas. 
5. Vet organizations carefully. Unfortunately, disasters often attract scammers. Use resources like Charity Navigator, Candid (formerly GuideStar), or the Internal Revenue Service’s tax-exempt search site to verify an organization’s legitimacy. Be cautious of newly formed nonprofits and prioritize those with a proven track record in disaster relief. 

The phases of disaster philanthropy 

Understanding the phases of disaster recovery can help you align contributions with specific needs: 

1. Mitigation and risk reduction. Focus on preventing or minimizing future disasters through research, preparedness training, and infrastructure improvements, such as planting mangroves to combat storm surges. 
2. Preparedness. Support emergency training for first responders, community education, or planning exercises for evacuation routes. 
3. Response. Contribute to immediate needs such as food, water, medical care, and temporary shelter. 
4. Recovery. Aid long-term rebuilding efforts, including repairing homes and restoring social services. 

Lessons from recent disasters 

The aftermath of Hurricane Helene highlighted the importance of unrestricted funding for immediate response, while the Los Angeles wildfires demonstrated the value of local partnerships in addressing specific community needs. These disasters serve as reminders that effective philanthropy requires careful planning and a willingness to adapt as needs evolve. 

Natural disasters are unpredictable, but thoughtful philanthropy can help mitigate their impact and support communities in rebuilding stronger. Whether donating to a trusted global organization or a local nonprofit, your contributions can help make a meaningful difference when strategically planned. Global organizations like the Red Cross and Doctors Without Borders provide critical support during crises. However, partnering with local initiatives can ensure resources are directed where they’re needed most. Giving unrestricted, cash funds to legitimate local organizations allows donations to align with any of the disaster recovery phases mentioned previously. 

By taking the long view, vetting organizations, and focusing on unrestricted funding, you can help ensure your support not only addresses immediate needs but also paves the way for resilience and recovery. 

How much of my donation will go directly to the charity? 

No charity can have 100% of donations go directly to the charitable work. Some administration costs, known as “overhead”, are normal, but be careful about charities with hidden financials. Here are some of the most prominent charities and how much of the organization’s donations go directly to charity:

Source: Cooper, M.A.S., B.S., Megan. “Discover What Percentage of Your Donations Go to Charity.” Love to Know, 2 November 2023. 

Your money can help make a difference, which is why it’s important to be aware of a charity’s spending before you donate. Make every dollar count by checking out potential charities and considering the different questions to ask. By giving strategically, you’ll be able to pick the right organizations and confidently donate to the causes that are most important to you.  

Learn more about the benefits of charity beyond kindness, the differences between a private family foundation and a donor-advised fund, and how a holistic wealth strategy can help stretch your generosity. Not a client? Let’s talk. 

¹ Schwab.com. “Dafgiving360TM.” Schwab Brokerage. Accessed 22 January 2025.