Two long-awaited stories concerning the disaster-relief charity FireAid’s distribution of funds have been launched to authorities officers and the general public.
The 501(c)(3) group, based by Clippers proprietor Steve Ballmer, had been below scrutiny from Republican politicians (together with President Trump, who referred to as FireAid a “total disaster”) and a few residents of fire-ravaged areas in Pacific Palisades and Altadena. They questioned the priorities and effectiveness of grants given out after FireAid raised an estimated $100 million by way of its flagship profit concert events in January.
In response, FireAid commissioned two stories — one a long-planned six-month standing replace on the specifics of its fundraising, grant making and native impacts, and the opposite an impartial assessment by legislation agency Latham & Watkins. Each paperwork, reviewed by The Occasions, have been despatched to native and nationwide officers and the Division of Justice.
“The law firm conducted an independent review of the charity, and shared conclusive findings affirming that FireAid has acted in accordance with mission, has strong accountability measures and aid is reaching affected communities,” the FireAid group mentioned in an announcement concerning the assessment findings.
Scrutiny of FireAid‘s handling of charitable funds was escalated in July when California Rep. Kevin Kiley (R-Rocklin) said, in a letter calling for an investigation, that “tens of thousands of people in Southern California lost so much in the wildfires, including their homes and loved ones. Americans generously opened their wallets to help the people impacted by the wildfires. Every penny should go towards helping those people rebuild their lives. I am urging the Attorney General to open an investigation into the matter immediately so the people of Southern California can receive much-needed relief.”
In response to those concerns, FireAid commissioned an independent review from Latham & Watkins, which said in its report, “Recently, media reports and public inquiries have raised concerns regarding the distribution of the charitable donations raised. … Based on the investigation conducted to date, we have not identified evidence of any misrepresentations in the solicitation of charitable funds, improper selection of grantees, improper distribution of funds, improper use or misappropriation of funds, fraudulent intent, or deviation from FireAid’s said mission.”
“Rather, our findings indicate that FireAid understood its purpose as a charity concert to raise money for fire victims, communicating consistently how charitable donations would be used across its website, public statements, and sponsorship materials,” it continued. “FireAid put in place a comprehensive, multi-level grantmaking and evaluation process to ensure the effective distribution of funds. The overarching goal was to swiftly allocate funds to organizations that were capable of providing services to the community as fast as possible. Consistent with the ideology of disaster philanthropy, FireAid’s approach aimed to balance the need for formal processes and controls with the urgency of disaster response.”
The Pacific Palisades Neighborhood Council, a bunch whose early issues about FireAid prompted wider requires investigation, mentioned in a letter printed alongside the assessment findings: “Like many in the community, we were seeking clarity at a time when communication was scattered, and emotions were running high. Since that time, we have received an official statement from FireAid, as well as dozens of testimonies and direct information from organizations on the ground. These updates have painted a much fuller and clearer picture of how FireAid resources are being put to work — quickly, carefully, and with real local impact.”
“After calling for scrutiny of fund disbursements and accountability, we realize that misinformation online has increased, particularly around the use of FireAid funds,” the council’s letter continued. “It’s understandable, as disaster leaves people in a state of loss, anger and uncertainty. As a community organization, PPCC believes it has a responsibility to counter false or incomplete narratives with emerging facts. That includes recognizing when the people who could help actually did.”
Olivia Rodrigo performs through the FireAid profit live performance Jan. 30 at Intuit Dome in Inglewood.
(Jordan Strauss / Invision / Related Press)
FireAid’s inner six-month progress report, a duplicate of which The Occasions acquired, famous 75,020 donors to FireAid, with $99,330,741 in money raised and $8,390,463 in in-kind donations. These funds have been used towards two rounds of 127 and 70 grants to organizations totaling $74,675,000 (a 3rd spherical of grant purposes is underway and might be distributed later this yr), the report indicated.
The primary spherical of grants delivered $7.6 million to catastrophe aid teams, $6.7 million to frontline staff and small companies, $4.8 million to housing and well being teams and $3.3 million to musician and artist organizations, amongst different sub-categories like meals entry, reservation of leisure areas, advantages navigation and faculties, in line with the progress report.
A second spherical spent $14.7 million on wildfire restoration efforts and $5.9 million for wildfire sufferer aid, amongst different efforts.
The doc additionally clarifies the precise sources of the funds raised through the profit. Tickets and suites on the Discussion board and Intuit Dome — the websites of the concert events — raised simply over $14 million, whereas $44.5 million got here from company sponsors, $9.9 million from institutional and philanthropic donors, and $14 million from live-broadcast and particular person donations. Ballmer and his spouse, Connie, supplied $14 million in matching donations.
FireAid additionally clarified that “a stipulation of the FireAid funds communicated to each grantee that not a single dollar was allowed to be spent on administrative costs to ensure maximum benefit.”
Flea, left, and Anthony Kiedis of Crimson Sizzling Chili Peppers carry out at FireAid on the Discussion board.
(Chris Pizzello / Invision / Related Press)
“With all concert operational costs being privately funded, with additional pro bono and in-kind support,100% of the monies raised are being directed to frontline organizations helping survivors recover and rebuild,” the report mentioned.
The Latham & Watkins report spoke on to issues over the technique that, quite than making direct money grants to affected residents, the funds went to a variety of established native nonprofit teams.
“With respect to concerns that individuals did not receive funds directly, FireAid’s corporate formation documents and website explicitly state the purpose of the funds,” they mentioned. “While FireAid itself is not making direct payments to victims, FireAid has disbursed grants to several nonprofit organizations that have provided direct relief — across a broad spectrum of services — to survivors of the fires and their communities. … FireAid’s determination to distribute aid to the verified nonprofit organizations identified through its vetting process, rather than disbursing money directly to individuals, is an approach that FireAid consistently communicated to both the public and donors.”
“Latham has not identified any evidence that funds were given to organizations that were not providing relevant aid nor that funds were being used improperly,” they mentioned. “Though critics have expressed belief that certain organizations were inappropriate grantees, recipients of FireAid funds appear to have used those funds in ways that are consistent with their intended and communicated use.”
A last year-end report is scheduled for Dec. 31 and last audit for, accounting agency KPMG early subsequent yr.
