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PASADENA, Calif. — In response to the catastrophic wildfires that have ravaged Los Angeles, leaving numerous individuals without homes and affecting thousands of businesses, a nonprofit organization based in the city has stepped in to offer crucial financial assistance. The Change Reaction is distributing cash payments that reach up to $5,000 to those who have faced significant hardships due to the fires, aiming to provide rapid, unrestricted support for those in need.
Founded by real estate investor Greg Perlman and his wife Jodi, The Change Reaction has already issued checks to around 3,000 individuals. This initiative comes as the cost of living in Los Angeles remains among the highest in the country, making immediate financial support all the more essential. Perlman highlighted the urgency of these cash payments, likening their necessity to “oxygen.” With an initial commitment of $10 million, nearly half of these funds have been allocated to aid those affected by the crisis.
Among those helped, 80-year-old Katherine Anderson lost her residence of over three decades due to the Eaton Fire last month. Currently, she is staying in a motel with her sister and a few other individuals, struggling to cope with the loss. Anderson expressed her need for assistance, stating, “I need it. I lost everything.” She received a text from her church, which also suffered damage in the fires, inviting her to a financial relief event hosted by The Change Reaction. Grateful to receive a check with no conditions attached, Anderson plans to use the funds to secure a more stable living situation.
Experts suggest that direct cash assistance plays a vital role in stabilizing affected households during emergencies. Often, federal aid, insurance payouts, and other forms of financial support arrive slowly, leaving individuals at risk of accumulating debt. Cash infusions are crucial as they empower recipients to control their resources and prioritize their immediate needs. According to Patricia McIlreavy, the president and CEO of the Center for Disaster Philanthropy, these direct payments can significantly prevent individuals from falling deeper into financial difficulties.
The Change Reaction has been providing financial support in Los Angeles since 2019, initially assisting families dealing with expensive healthcare demands related to their hospital care. The organization’s model allows hospital social workers to recommend families in need of assistance, helping streamline the process. With support from a network of 250 nonprofit organizations and around 2,000 change makers—such as social workers and community leaders—the group can respond swiftly to financial emergencies, often delivering aid within a couple of days.
During the recent wildfires, The Change Reaction mobilized quickly, coordinating with local clergy to identify impacted households. The organization has provided approximately $1,000 to those evacuated without losing their homes, while others have received between $2,500 to $5,000 based on their situation. A substantial donation from GoFundMe facilitated additional gift cards to assist families during this critical time.
The significance of this aid cannot be overstated, as highlighted by Charles Johnson, a pastor in west Los Angeles, who underscored the immediate relief being provided. Many families have been displaced, some having missed meals due to school closures, while others are staying in temporary accommodations far from their homes. Johnson noted that federal assistance, such as FEMA’s $770 payments, falls short in providing adequate relief in a high-cost area like Los Angeles.
Numerous organizations, including philanthropic foundations and FEMA, are recognizing the importance of cash assistance following disasters. Initiatives like GiveDirectly use technology to deliver immediate financial support to households in affected regions. The Community Foundation of Sarasota County also implements programs to cover essential living costs during emergencies.
Despite these efforts, challenges remain in reaching everyone in need. At a recent Change Reaction event in Altadena, many individuals stood in long lines to receive their checks, illustrating the demand for assistance. Although aimed at helping those referred by community leaders, the program risks excluding individuals with weaker community ties or those hesitant to seek help. The Change Reaction’s president, Wade Trimmer, expressed hope for increased funding to broaden their impact, acknowledging current limitations in assisting all those needing support.
The organization is now exploring ways to assist with new housing expenses, including deposits and rent, committing $500,000 to aid people affected within the foster care system and focusing attention on the elderly. Currently, the Change Reaction has received $15 million in donations, with aspirations to raise a total of $50 million to expedite their relief efforts. “We are a clearinghouse, getting this money out daily,” stated Trimmer while emphasizing the group’s goal of efficiency in delivering assistance.
Among those receiving aid, Angelica Martinez felt a sense of relief after attending a recent event. Although her own home did not burn, she faced difficulties being away from it for an extended time. Martinez expressed her need for help with basic expenses like laundry and food for her family. “Anything is a blessing,” she remarked, recognizing that this was the first assistance she had received since the fires.
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