Crowd-funding draws donations for Sandy relief

WASHINGTON — In the after­math of Hurricane Sandy, some who lost their homes or businesses have turned to crowd-funding websites to elicit a faster and more direct ­response than they could ­expect from the government or traditional charities.

While Congress considers a $60 billion disaster aid package for the storm victims, hundreds of them got quicker results by creating personalized fund-
raising campaigns on ­sites like GoFundMe, IndieGoGo, and HelpersUnite.

These individual efforts have totaled a few million dollars, enough to show the funding model can work. GoFundMe leads the way with $1.3 million raised by about 320 individual campaigns from more than 14,000 donors.


Crowd-funded campaigns have also been started in recent days to benefit families affected by the school shooting in Connecticut, though those efforts are on a smaller scale than those that benefit the thousands hit by Sandy.

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‘‘There’s always going to be some sort of gap between when a storm or natural disaster or accident or tragedy happens and when larger organizations can step in and help, whether that’s an insurance company or FEMA or what have you,’’ said Brad Damphousse, chief executive of GoFundMe, based in San Diego. ‘‘Our users get their money as it comes in, and ­donors know exactly where the money is going.’’

By comparison, the Red Cross has more than $200 million in donations and pledges for Sandy, which includes donations through crowdsourcing website CrowdRise, and the Federal Emergency Management Agency said this month it has distributed about $2 billion in aid to 11 states struck by Sandy.

Successful applicants can ­receive up to $31,900 from ­FEMA for home repairs, though lawmakers have said it is often not enough to rebuild.

Using GoFundMe, Doreen Moran set out to raise about $5,000 for her friend Kathy Levine of Long Beach, N.Y. ­Moran said she had been sick but wanted to do something to help after Sandy’s destruction. She set up a GoFundMe page, linked her Facebook page, and started spreading the word. She had a birthday coming up, but asked for gifts for her friend, ­instead of for herself.


‘‘Donate what you can,’’ she wrote. ‘‘I will make certain it all gets to her fast. Because she needs it fast.’’

Moran has raised more than $15,000 in a month and has been posting pictures of repair work that has begun.

The crowd-funding site HelpersUnite considers its personal fund-raising campaigns as secondary to the Red Cross or FEMA relief efforts. A percentage of each donation can be directed to a charity of the ­donor’s choice, such as the Red Cross.

The site’s chairman, Steve Temes, said its model of fundraising can help victims cover costs that are not paid by insurance or government aid. The site did not immediately provide a total for its Sandy-related campaigns.

IndieGoGo’s site says $965,443 has been raised through 161 Sandy campaigns.