When the Eaton wildfire engulfed Los Angeles, Nick Carranza, a 45-year-old filmmaker and content producer, rushed to the house of his longtime friend, who was battling the 15-foot flames with no firefighters in sight. Together they managed to put out the fire using water from the neighbor's pool.
Carranza, a former Altadena resident, couldn't sit back during the crisis. He and a few of his friends created “One Love Altadena” GoFundMe campaign to help vulnerable Altadena residents displaced by the fires.
“Altadena is such a diverse community with people from all socioeconomic backgrounds,” Carranza said. I knew there would be people in trouble.”
After reaching the initial goal of $10,000, their GoFundMe continues to raise moneywith proceeds going to help Black and Latino families with their own fundraising campaigns.
Since the wildfires broke out in Southern California earlier this month, more than 600,000 donors have contributed to GoFundMe campaigns. According to a company representative, as of January 24, over $200 million has been raised on the platform to help families, businesses and communities affected by the crisis.
on the page California Wildfire Center compiles a number of individual fundraisers and general Wildfire Relief Fund sends “Emergency relief grants of $1,000 each to individuals who lost homes, loved ones and possessions to the Palisades, Eaton and Hurst fires.”
If you are interested in initiating or donating to the GoFundMe campaign to help the thousands of people affected by the ongoing wildfires in Southern California, it's important to know where to start, how to verify beneficiaries, and what pitfalls you may encounter.
How does GoFundMe work?
GoFundMe is a crowdfunding platform where people create fundraising pages for themselves or loved ones who are experiencing financial hardship, whether due to expensive medical treatment, an expensive accident, or natural disaster.
The platform is easy to use. With a series of instructions, you can quickly set up a campaign and a fundraising goal for your cause. Once your fundraiser has started, you can add more information or change the fundraising goal. You can request a withdrawal once your campaign has started, with transfers usually taking two to five business days.
A standard fee is deducted from the donation to cover payment processing, currently 2.9% plus 30 cents per transaction. Anyone can be a donor and contribute as little as $5 to a fundraising campaign.
Why do people use GoFundMe for disaster relief?
The main reason why people use GoFundMe for disaster relief is how easily they can spread the word through personal networks. You can share the link to your fundraising campaign via email, text, or social media.
For example, after donating to several campaigns of acquaintances who lost their homes in the wildfires, I shared the links on my social networks, which helped bring in more donations.
GoFundMe also has an advantage over other official sources of help because it's instantly accessible. Individuals waiting for grants, loans or other forms of assistance often turn to GoFundMe to get faster relief or to raise awareness for their cause.
How do you know if a GoFundMe page is legit or a scam?
GoFundMe has disclosure measures potential scams and prevent misuse of the platform. According to his website, the GoFundMe Giving Guarantee provides donors with a full refund if there are indications of abuse or fraud.
A GoFundMe spokesperson told CNET in an email that fundraisers undergo an enhanced verification review process, which includes oversight by trust and security experts and technical tools to detect any abuse.
That said, scams can and do happen. It is best to donate to campaign organizers and recipients that you know personally or through a family member or mutual friend. Look for inconsistencies and flag anything that seems fishy — for example, if the story isn't picking up or if the names on the fundraising page don't match the recipients.
“Always do your research before donating,” said Tai Stewart, founder of Support of financial solutions. “There are vetting processes, but you have to do your own analysis.”
You can also do a reverse image search on Google to verify any source or location information. My friend tried this for a certain LA layoffs fundraiser after he noticed something was wrong. The location of the photo was in Ohio, not Altadena.
In Carranza's case, he and his fellow campaign organizers ensure donations are dutifully distributed by personally contacting households in need and learning about their circumstances. For example, they confirmed that an elderly couple who ran a foster home and daycare center lost their home and source of income to the fires.
Do GoFundMe Funds Limit Federal Aid Options?
After the wildfires broke out in Los Angeles, some experts warned that crowdfunding donations received from GoFundMe could limit the amount of the federal aid you receive.
Brandi Richard Thompson, FEMA's public affairs officer, said the agency cannot duplicate the assistance individuals receive from another source, whether it's from an insurance payment or a donation.
To be clear, those who receive outside donations are not automatically disqualified from federal aid. But if someone has a GoFundMe campaign to rebuild their home because their house burned down, that could be interpreted as receiving funds elsewhere for the same loss.
“(The case) needs to be reviewed to make sure they're not doubling the benefit they're getting from the federal government,” Richard Thompson said.
However, if someone makes it clear that they are only raising money for temporary needs (food, shelter, or clothing), that should not affect how much they can receive from the federal government.
FEMA California wildfires page provides information about programs, funding and resources available to residents affected by wildfires. On application deadline for FEMA rental assistance for displaced residents is March 10, 2025.
If you raise money on GoFundMe, do you have to pay taxes on it?
Personal gifts are usually not tax deductible, so you don't have to worry too much about paying taxes on the fundraising money you receive. “You can think of it as if a friend gave you $10,” Stewart said. “You wouldn't report it as income on your taxes.”
However, depending on how your campaign payments were processed, Venmo, Zelle, PayPal, or credit card revenue could likely fall below 1099-K categoryStewart said.
If the disbursements exceed $5,000, a 1099-K tax form will be sent to the person receiving the campaign funds, but this does not automatically mean taxable income. It is best to consult a tax professional to review the specifics and understand your tax responsibilities.
If you donate to GoFundMe, is it tax deductible?
You should do your research before making a donation to see if the crowdfunding site contains tax information.
Some GoFundMe campaigns are run by nonprofits, which is usually disclosed on the campaign page, or you can search for tax-exempt nonprofits by IRS Search Tool. If you donate to an organization that is registered as a 501(c)(3) nonprofit, you may receive a tax write-off for your charitable contributions.
Otherwise, if you're offering a donation to an individual or household, the way you would give money to a friend or family member, it's considered a personal gift, Stewart said.
How is GoFundMe helping Los Angeles wildfire victims?
Carranza is just one of many individuals using the crowdfunding platform to help those displaced by the fires. By lending a hand to Altadena residents, he and his fellow organizers learned about other people in need. Many of the displaced, without technical access or English language capacity, did not have their own GoFundMe campaigns.
For example, Carranza encountered a woman living in a borrowed car with three cats. The fires destroyed her home, workplace and car.
“Sometimes people need help, but they're not always ready to ask for it,” Carranza said. “Just show up as you can.”