Most disaster giving goes to relief efforts, not rebuilding

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Most disaster giving goes to relief efforts, not rebuilding
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Ninety percent of the US$5.2 billion donated in 2020, the most recent year for which data is available, went to dealing with immediate disaster needs. In other years, about half of disaster grantmaking went to such purposes. The rest went to helping communities prepare for hurricanes, droughts, life-threatening spread of disease, and other problems as well as to recovery and rebuilding.

The amount of money foundations and charities gave in response to COVID-19 is stunning compared with the past. The 2020 figures are 15 times as much as the contributions in 2019. To be sure, grantmakers aren't keeping up that pace: Preliminary figures for more recent giving show that foundations are slowing their giving considerably.

Grace Sato, Candid's director of research, says that it is already clear that the increase in giving fueled by Covid-19 has subsided. A survey of foundations released by Candid in May found that Covid-related funding declined by 31 percent from 2020 to 2021. That disparity is apparent in places like New Orleans, where she lives. "There is still damage and loss that you can trace directly back to Katrina," she says. "There's infrastructure that hasn't been repaired, and that's because the focus was all in those immediate first few days."

Beth Gazley, a professor who has researched disaster philanthropy at Indiana University, says the latest report's findings demonstrate the need to fund planning and resiliency efforts for disasters caused by climate change. That means foundations must examine whether their funding "addresses the symptoms and not the problem itself."

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