Following natural disasters, heartbreaking images of destruction rapidly flood the news and social media. The instinct for many of us is to offer any kind of help we can. There are many ways to respond in the face of a crisis, but how do we do so thoughtfully?

Donations that come in during a disaster tend to go toward immediate relief. While funds for short-term aid are certainly needed, prioritizing such efforts can mean that initiatives for prevention and long-term recovery get overlooked.¹ For example, years after the initial event, survivors may continue to struggle with issues related to mental health, grief and bereavement.

Being intentional with your overall giving strategy can allow you to continually support organizations that need it the most – and help your dollars have a lasting impact.

Incorporating disaster philanthropy into your overall wealth management plan

From catastrophic hurricanes to raging wildfires, unfortunately, major disasters are happening more and more frequently. The impulse to act right away can be strong, especially for those who have the financial capital to make a sizable impact. Having a clear disaster philanthropy plan in place can help ensure you are giving in a way that is both responsible and truly helpful.

In practice, this can involve integrating emergency funding into your current giving strategy by earmarking funds specifically for unforeseen events that may arise down the line. Consider it a complementary component of your existing strategic approach to charitable giving. You can feel at ease knowing that when the time comes, money is already allocated and ready for deployment. This can prevent you from drawing away funds from other charitable or personal goals in order to respond to a disaster quickly.

It’s important to create a multi-year giving plan

After a disaster, all eyes are on the immediate impact. Yet the recovery process for a major disaster can last long after media coverage of the crisis has ended. It may take years for life on the ground to return to normal – or a new normal.

Let’s imagine a family that’s been displaced after a natural disaster. The initial shock and media coverage around the crisis may inspire an outpouring of one-time donations for costs like food and temporary shelter. But what happens six months later when that family’s Federal Emergency Management Agency (FEMA) money runs out? Support in the future will be critical for getting that family back on their feet and able to address lasting needs such as a new place to live, clothing, household essentials and potentially ongoing medical care.

To offer a real-world example, let’s look at Hurricane Harvey. Five years after the hurricane made landfall in Texas as a Category 4 storm, roughly 19% of those affected still had not completely recovered from the impact.² As is evident in the case of Harvey, factors like FEMA application processing times, lack of flood insurance and subsequent weather emergencies can have a significant effect on the speed and effectiveness of recovery efforts – and can often weigh heavier on minority communities.³

Implementing a multi-year giving strategy can make a lasting difference by providing continued support to those who need it most.

When it comes to donations, cash is king

If your goal is to serve those who have an immediate need, the best way is typically through cash donations. Cash is often the most helpful gift because it can allow nonprofits to purchase badly needed items right away and enable them to be nimble in their disaster response.

You might be wondering about other ways to make a difference, like giving appreciated stock, using donor-advised funds or making qualified charitable distributions from an IRA. Doing so can still be a strong component of your overall giving strategy. For example, you might give cash within the first two years of a disaster, when instant relief is needed most, then make a third-year grant of appreciated stock.

Identifying causes and organizations that align with your values

Once your giving strategy is in place, the next step is to find organizations you want to support. Concentrating your giving on those who are working on the ground is one way to have a real impact. Currently, there are more than 900 community foundations throughout the U.S.⁴ These local organizations are often best able to align incoming resources with immediate needs, and they will likely have deep roots in the affected area and strong ties to local leaders and potential difference-makers.

One simple strategy is to look at the causes you’re already supporting. For example, if you’re already funding the arts, look into arts organizations that may be in need following a disaster. Why fund organizations not centered on relief efforts? They often face interruptions to their typical fundraising, canceled income-earning programming and reduced volunteer engagement. An otherwise healthy organization that provides valuable services to the community may quickly find itself in survival mode. Supporting organizations rooted in causes you care about can allow you to give in a way that’s in line with your values and your strategic giving priorities while helping preserve groups that will continue to service impacted communities through and after recovery.

Other ways to maximize your philanthropy efforts

Here are a few other simple strategies that can help put more muscle behind your disaster philanthropy plan:

• Pool your resources. Joining forces with friends and family can increase the impact of your gift and reduce the gift administration burden for the recipient.
• Contact your employer. Some companies will match some or all of your donations and create special matching initiatives after a disaster.
• Help organizations plan ahead. If you already have a strong relationship with certain organizations, ask them if they have a disaster plan. If not, see if they have one in the works. You may be able to provide additional resources to help them get it finalized or refreshed for what might be ahead.
• Turn to trusted news sources. Beware of rumors, speculation and misinformation after a disaster. It’s critical to fact-check with reliable sources before making decisions about your support.

Protecting yourself from fraud

Unfortunately, fraudsters use major disasters as an opportunity to take advantage of those who are motivated to help. It’s common to come across “nonprofits” that sound like legitimate organizations but are really scam sites designed to elicit donations from well-meaning people. Below are some steps to help protect you from fraud:

• Think twice before giving to crowdfunding sites and online donation platforms. Sadly, there’s no guarantee that your money will go to someone in need. Artificial intelligence is also getting very good at impersonating individuals and organizations online.
• Slow down and do your due diligence to ensure you’re funding a reputable group –and not a bogus organization with a name that sounds similar to a well-known nonprofit group.
• Never give your credit card information over the phone. Ask anyone soliciting a donation to send you a web link so you can verify that the organization is legitimate. From there, only send funds via a private computer network or, better yet, through a bank service.

We can help

You don’t have to wait for the next disaster to strike to start thinking about how to help. Developing a disaster philanthropy plan can start with the following steps:

• Identify your values and let them inform your disaster philanthropy plan.
• Identify causes and consider engagement and impact when deciding which organizations to support.
• Research organizations and review their websites to learn about their funding mission. You can also read about their values, accomplishments and impact.
• Create a budget and, with your family and trusted financial advisors, decide how much you want to donate this year and in future years. Also leave part of the budget unallocated for special opportunities or unforeseen needs such as a local disaster.

We can help you create a disaster philanthropy plan that’s aligned with your goals and the needs of your community. Connect with your J.P. Morgan advisor to start the conversation.

IMPORTANT INFORMATION

This material is for informational purposes only, and may inform you of certain products and services offered by J.P. Morgan’s wealth management businesses, part of JPMorgan Chase & Co. (“JPM”). Products and services described, as well as associated fees, charges and interest rates, are subject to change in accordance with the applicable account agreements and may differ among geographic locations. Not all products and services are offered at all locations. If you are a person with a disability and need additional support accessing this material, please contact your J.P. Morgan team or email us at accessibility.support@jpmorgan.com for assistance. Please read all Important Information.