In order to apply for grant from FireAid, one needs to be a nonprofit and to be able to supply that nonprofit number on the application. FireAid does not give directly to individuals, but on its website it notes, “Together, we raised an estimated $100 million that have been designated for direct relief and will not be used for administrative purposes.”
Maryam Zar, told CTN that it can take 12 to 18 months to get 501(c)(3) designation from the IRS. And if one wants to receive tax deductible, donations or grant money one needs that designation.
The easiest way to get that designation is to reach out California Community Foundation (CCF) or perhaps Community Partners and use their tax-deductible number. For the use of the number, one pays an administrative price.
Zar said those organizations are called fiscal sponsors. Her group Palisades Recovery Group (PRC) is using CCF to obtain a nonprofit number. “They typically charge a percentage-based fee to cover legal compliance, financial oversight, donation processing, and tax receipting, which means administrative fees: 2.5% on contributions, 2.5% quarterly on held assets, and a 2–3% credit card processing fee, are about 8 %,” Zar said.
Pali Strong’s Larry Vein, who received half million from FireAid, used Community Partners nonprofit number, which has a similar administrative fee to CCF.
For example, MusiCares received FireAid money meant for individuals. (They declined to give the dollar amount to CTN). According to its website, individuals are eligible for MusiCares disaster relief support after three years employment in music in any capacity or if they have credit on six commercially-released recordings. MusiCares is an affiliate of the Recording Academy that presents the Grammy Awards.
On its website is said that MusiCares has distributed $6,125,000 to more than 3,100 music professionals across Los Angeles and $3,969,005 has been directed to three community-based organizations: California Community Foundation, Direct Relief and Pasadena Community Foundation.
CTN went to California Community Foundation and found that in 2023, it has nearly $2.3 billion in assets. The President and CEO makes an annual income of $650,000 click here.
In addition to helping startup nonprofits by “loaning them a number,” so they can apply for grants, they also gave a wildfire fund and grantees, which included the Antelope Valley Partners for Help, The LGBTQ Center in Long Beach, Humboldt Area Foundation and the Koreatown Youth & Community Center, inc. click here. A spokesperson for CCF contacted CTN and said that was the wrong website and Circling the News is sorry for the confusion. The correct link is click here.
FireAid Funds this year from CFF are going to LA LGBT Center (Offering comprehensive health, housing, and recovery support to LGBTQ+ communities), the Little Tokyo Service Center (Provides a comprehensive array of social welfare and community development services to assist Asian Pacific Islander communities, families, and seniors impacted by the wildfires)and the Mar Vista Family Center (Delivers comprehensive wildfire recovery support through financial assistance, employment opportunities, and family services,
including early childhood education and youth programs, while also helping affected families build long-term stability.
Community Partners click here was even more helpful and gave an How-to Guide to apply for FireAid click here.
Zar wrote, “As a sponsee of the California Community Foundation (CCF)—a highly respected nonprofit—PRC underwent a vetting process to ensure alignment of mission and purpose. CCF was PRC’s first choice not only due to its prominent reputation but also, its competitive administrative fees: 2.5% on contributions, 2.5% quarterly on held assets, and a 2–3% credit card processing fee. These were the most competitive rates among all fiscal sponsors considered.”
If there were true transparency with “sponsored” nonprofits, one should be able to see how many of those received FireAid Funds. For example, Pali Strong and The California Native Vote Project are both under Community Partners and would have had to pay administrative costs.
CTN reached out to FireAid spokesperson Chris Wallace (and Lisa Cleri Reale) to see how many of the nonprofits had either 95-4302067 (Community Partners) or 95-3510055 (CCF) numbers, which means they are paying administrative costs. If they respond, the story will be updated. It also seems that the FireAid money going to nonprofits should not be used for executives salaries, which are usually six figures.
How is Larry String using the $500,000 he applied for PaliStrong?
I’m dumbfounded. You can “borrow” – for a fee – someone else’s non-profit ID? And the President of the California Community Foundation makes $650,000? The more CTN digs, the more I learn, and FireAid sure is smelling like a scam.
Its not borrowing. The fiscal sponsor takes on all the legal and financial responsbiltity for the project if accepted through an application process. The “fee” is just an allocation of the revenue that covers the financial management, grant reporting ,etc. that the nonprofit fiscal sponsor does. It’s not a mythl Learn about it. and understand it’s a great model…
Thank you for enlightening us as you always do!
Not shocked but saddened.
During a major flooding event in 1997 in Grand Forks North Dakota, Joan Kroc (McDonalds) donated 15 million dollars for recovery efforts. It was simple, if you were in the massive flood areas you received $2000 – no red tape, no months and months of waiting. Real money that allowed people to begin the process, to hire an electrician to get power to their home again, to purchase clothes and other needs they had lost.
Were there stories of minimal fraud. A few but it wasn’t the business it has become now. How sad. That 100 million which in true real life equates to little, compared to the overall loss, needs to be in the hands of the people that lost their homes.
“MusiCares received FireAid money meant for individuals. (They declined to give the dollar amount to CTN). According to its website, individuals are eligible for MusiCares disaster relief support after three years employment in music in any capacity or if they have credit on six commercially-released recordings. MusiCares is an affiliate of the Recording Academy that presents the Grammy Awards.”
MUSICARES is based in nashville TN. the link on the fireaid website is broken.
https://www.musichealthalliance.com/fire-relief/
SWEET RELIEF MUSICIANS FUND was a round one grant recipient. their “community partners” include: youtube, stubhub, livenation, universal, warner brothers, soundcloud, klipsch, warner brothers, noisey / vice lol
https://www.sweetrelief.org/community-partners.html
AND they list and link to *hundreds* of supporters including goldman sacks! and many MANY famous people!
https://www.sweetrelief.org/supporters.html
idk guys this whole thing is giving inside job / disaster capitalism / racketeering! smh