FireAid Hires Law Firm for Comprehensive Review of Fund Distribution
FireAid has engaged the prestigious law firm Latham & Watkins to conduct a thorough review of the distribution process for approximately $100 million raised during a significant benefit concert earlier this year. This announcement, made on Monday, comes in response to growing inquiries from Congress and the media regarding how these funds are being allocated.
In a recent letter to California Representative Kevin Kiley, FireAid outlined the internal review process, which was shared shortly after Kiley posted it on his X account. The organization has faced scrutiny from various lawmakers and journalists, particularly from conservative news outlets, prompting FireAid to take these concerns seriously. Notably, former President Trump weighed in on the matter, labeling FireAid as a "total disaster" and suggesting it could be a “Democrat-inspired scam."
In his X post, Kiley noted, "I’ve received a letter from FireAid. They’ve hired a law firm to conduct ‘a comprehensive review of FireAid’s governance and grantmaking,’ including whether recipient organizations are using funds in alignment with FireAid’s stated purpose and commitments." He has not yet elaborated on his thoughts regarding FireAid’s proactive approach.
Following Kiley’s tweet, FireAid reaffirmed its commitment to transparency, stating that the review will assess whether recipient organizations are indeed using the funds as intended. The organization emphasized that they have provided documentation demonstrating how the funds have delivered critical relief, ranging from food and housing to legal aid and direct cash assistance.
In the letter addressed to Kiley, attorney Makan Delrahim from Latham & Watkins expressed appreciation for the Congressman’s concerns. He stated, “We understand and appreciate your concern about the manner in which FireAid committed to disperse funds, and we are grateful for your continued concern for the survivors of the fires.” However, the letter also sought to clarify misconceptions, particularly regarding whether individual victims were promised direct financial assistance.
The key point of contention revolves around claims that FireAid funds were “diverted” and that donor intent was disregarded. Delrahim’s letter counters this narrative, asserting that FireAid has directed grants to reputable non-profits capable of providing immediate relief and long-term support to fire-affected communities in Southern California.
The review aims to ensure that FireAid remains aligned with its mission of directly supporting fire survivors. Delrahim stated, “To ensure FireAid remains true to its original mission, our law firm has been retained to conduct a comprehensive review of FireAid’s governance and grantmaking processes. We look forward to sharing the results of our ongoing review with you soon.”
The allocation of funds has been a topic of discussion in the media, including a recent article in the Los Angeles Times. This piece highlighted testimonials from several organizations that confirmed they received the promised funds and explained their intended uses. However, it also featured voices from fire survivors who believed the fundraising efforts would provide direct assistance to them rather than being funneled through intermediary organizations.
FireAid has previously published a list of over 160 non-profits, schools, and organizations set to receive grants. The benefit concert, held on January 30, featured high-profile performances from artists such as Green Day, Billie Eilish, Lady Gaga, and many others, all coming together to support fire relief efforts.
As FireAid moves forward with its internal review, the organization remains committed to transparency and accountability, ensuring that the funds raised will effectively aid those in need.
