LETTER: FireAid Money Should Go to Victims

Aftermath of The Palisades Fire. Many residents lost everything.
Photo: CalFire

Thank you for your ongoing coverage to hold FireAid’s designate, the Annenberg Foundation, accountable for the over $100 million raised in January.  During one of our community’s darkest hours, the outpouring of generosity from around the world illuminated our shared humanity.  It gave us the hope we needed with promises, “FireAid funds will support the Los Angeles-region’s immediate needs and long-term recovery from the recent wildfires…

Because my past experience with the Annenberg Foundation had been positive, I waited until Round 2 of grant distributions to send this message.  I desperately hoped to discover that the Annenberg Foundation had a staged plan to direct grants to specific constituencies in each round. Perhaps Round 1 would be a very general distribution with often tenuous relationships to the fire. Round 2 would directly serve the rebuilding efforts of residents, business owners, and public spaces in the two Los Angeles communities that burned to the ground in a catastrophic fire. Not the case. While Round 2 connected slightly more to the Palisades, it’s a long way from who most donors intended their hard-earned money to serve.

My family and friends who lost homes do not have the bandwidth to pursue an increasingly constant refrain, “What happened to all that FireAid money?” As one of the lucky few who did not lose a home and had an outstanding experience with USAA, I am positioned to pursue an answer; to implore the Annenberg Foundation to be responsible stewards and focus on direct giving to Altadena and the Palisades in Round 3.

I encourage the Annenberg Foundation to look to the life-saving American Red Cross for its outstanding support of our communities. While residents were buried in administrative paperwork with FEMA, not knowing if anything would come of their applications, the Red Cross saved the day. More than $167 million donations received for the LA wildfires by the Red Cross were divided into equal parts for every household within the fire perimeter. January’s bridge grant provided $600, followed by $3200 in May, and that does not include separate applications for aid. For countless neighbors, the Red Cross was a lifesaver.

Had the Annenberg Foundation adopted even an amended version of the Red Cross model, directing its over $100 million to all 248 businesses and 11,500 households who lost structures, each of the 11,748 would have received around $8,500 in direct aid. No administrative burden, no begging or debasing oneself required.

If it’s correct that $75 million in grants have been distributed so far, then $25-50 million remains. There’s still time to pivot and award the 11,748 as much as $2125-4250 each.  Why not award half of what’s left to a local nonprofit in Altadena and Palisades for a modified version of the Red Cross distribution. Or consider directing the remaining balance in equal parts to all the parks, schools and churches in Altadena and the Palisades to demonstrate responsible stewardship.

The obfuscation surrounding FireAid grants necessarily led me to researching the Annenberg Foundation in an effort to make sense of distributions.  When the Annenberg Foundation was not rated on Charity Navigator and other nonprofit auditors, it piqued my interest.  I proceeded to pull up its most recent IRS Form 990 filling.

By way of comparison, the Red Cross is rated 100% on Charity Navigator.  What’s more interesting is that the same filling shows the Director of the American Red Cross (nearly 20,000 employees) makes less money than her counterpart at the Annenberg Foundation (under 50 employees).  Just another fact that does not add up…

Luzanne Otte

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8 Responses to LETTER: FireAid Money Should Go to Victims

  1. Erik Jorgensborg says:

    Luzanne,
    Great research and incite. The Red Cross did do a great job directing their donations directly to the fire victims as per the donors wishes. I was wondering why the Annenberg foundation did not do the same with the FireAid donations. I thought Annenberg might be obligated by law to also donate directly to fire victims as per the donors intent. These local non profits do not seem to me to fulfill those donor wishes. I was then wondering how much each of us who lost homes might get. There is quite a a bit of money left (25%) for each fire victim. The total amount really would have helped rebuild our communities. It looks like the money was in control of the wrong Foundation. Again, great research!

  2. Michael says:

    She should have spoken up in Round one.

  3. Adam Roth says:

    Yes! Thanks for keeping this conversation alive Sue. How they’ve overseen invites so many questions the likes of which Lu’s beginning to ask here. It’s just wrong. Donors gave FOR THE PEOPLE of Altadena and Palisades, not dog rescues in the IE. Please help us Annenberg. Thanks again

  4. Luz O. says:

    Addendum: SteadfastLA is a designated 501(c)(3) that serves the people and places in Altadena and the Palisades. I’ve contacted the office to ensure they apply for a grant, as the people and for-profit businesses our towns cannot. I cannot think of a better suited nonprofit that serves both communities. Appointing SteadfastLA to award the third round of grant money would be a signal of good faith and honor the intentions of donors.

    At present, the Annenberg Foundation’s recipient list invites many questions which I will not articulate until all grants are issued. I want to give them benefit of the doubt to do the right thing, to see that they’re inflicting unnecessary suffering on the undeserving, and turn it around. Replicate the hope FireAid brought in January, as decision making to date has left us in the dark.

  5. diana marie baron says:

    “January’s bridge grant provided $600, followed by $3200 in May, and that does not include separate applications for aid.”
    I am completely unaware of receiving $3200. My house on Hartzell burned down, and how were we supposed to receive the $3200? I did receive $600 from FEMA in Jan. but these additional monies are no where in my bank account. And i am starting to rebuild – i have my permits, and we start next week – and this money would be hugely welcome since it is very stressful, as it is for all my neighbors of 32 years.

  6. joy moeller says:

    Very upset about this whole non-profit facade. I lost my home and my business and am living on social security as my business was in the Palisades as well as my home. My insurance money is now gone and I received no help from FEMA other than $770. My home burned down and even though my business building did not burn, it is unusable because of the toxins. (I now have a lung condition, trying to clear out my office). I attended a fund raiser for Palisades fire victims in the rose bowl which raised a lot of money but it went to non-profits. I am angry and am seeing a PTSD therapist and a pulmonologist.

  7. Mary deKernion says:

    You have done all of us a favor by providing valid facts and providing comparisons to other foundations. I too have found the salaries of foundation leaders have little to no relationship to the size of the foundation. Seems very odd to say the least.

  8. Sue says:

    Diana,

    If you applied to Red Cross you should have received funds. If you did not apply, you should check and make sure someone did not apply in your name.

    Sue

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