Strengthening resiliency to climate disasters begins with funding community preparedness efforts. The Climate Resiliency Report released in the fall of 2024 by the U.S. Chamber of Commerce, Allstate, and the U.S. Chamber of Commerce Foundation found that within the United States, every dollar invested in preparedness saves communities $13. This includes $6 in savings for damage and cleanup costs and $7 in saved economic costs for the community; including job losses, reduced incomes, and other economic effects. However, only about 3.4% of disaster philanthropy goes towards anticipatory action efforts. 

Center for Disaster Philanthropy (CDP) Vice President of Brand and Storytelling,  Sarah Lackritz moderated a recent webinar discussion on the topic with the following panelists:

This webinar was co-sponsored by Giving Compass, Philanthropy New York, and National Voluntary Organizations Active in Disaster.

Who is at risk of experiencing disasters here in the U.S. and what are we doing to reduce that risk?

Disaster preparedness is everywhere, we just may not think about it — buildings we work and live in adhere to seismic codes and have fire alarms and fire hydrants. These preparedness measures have saved millions of lives, but we hardly give them a second thought. Other types of preparedness could include investment in early warning systems, climate resilient infrastructure, improved dry land agriculture, mangrove protection, and making water resources more resilient. 

In terms of wildfire disaster risk just in the U.S., about 115 million people (1/3 of residents), live in areas exposed to wildfires. “…the use of better materials for things like roofing and decks and landscaping are proving to be incredibly effective at reducing wildfire risk…it’s a matter of implementing these solutions upfront and at scale to protect people and save communities and also taxpayers' billions of dollars in avoided costs,” said Patty Hernandez, Executive Director at Headwaters Economics.

How can funders work proactively to encourage their leadership to support funding preparedness and resilience activities rather than just being reactive?

“…we know the data can really help tell [the] story. And really, the data is clear. Resilience is many times more effective than spending on post-disaster recovery alone. Again, those are still critical dollars. But the more we do in advance, the better off we're going to be in the long term,” said Kate Nack, Vice President, The Allstate Foundation and Social Impact.

Without the visuals of a disaster that’s already happened, it’s hard to feel that sense of urgency that motivates funding once a disaster has already struck. So, it’s important to look at the data. Disasters have increased by a factor of five between 1970 and 2019, deaths have decreased nearly threefold, but economic loss and damages have increased sevenfold. Much of this has been concentrated in the last decade or two. More than 100,000 structures have been lost just to wildfires alone between 2005 and 2023. 

“To replace the homes that were destroyed by the L.A. fires to wildfire-resistant standards is going to take about $200 million more than their insurance claims will cover. We know a lot of people are underinsured, or even if you have sufficient insurance, it's not going to get you quite to what you need to build to ignition-resistant standards,” said Hernandez. 

Failing to fund preparedness is far costlier than funding recovery. A $200 million dollar investment in prevention really pales in comparison to the initial estimates of about $150 billion in property damages and capital losses that have been suffered in the LA fires. Similarly, one of Headwater Economics’ successes is the community of Three Forks, Montana, which needed just $5 million in preparedness funding to prevent up to $100 million in damage if it flooded. 

What are strategies for community organizations seeking funding for preparedness work?

“I think if communities are having a hard time identifying potential funders or getting a spotlight on their community, one thing that we look at, as well as other funders we're talking to, is collaboration from the organizations within that community. It's demonstrating how your missions together align and support preparedness and long-term recovery … How does a food bank support the housing initiative? How does a housing initiative support other dynamics within that community?” said Sean Vissar, Manager of National Programs and Strategic Partnerships, The Home Depot Foundation

Additionally, having a long-term recovery group or a VOAD chapter established for the county is a good way to get recognized and get on a list of national organizations and locations that have the capacity to request funding and then utilize that funding efficiently. Funders may look at the national VOAD community as a guide for knowing which communities have the capacity to utilize the funding for preparedness, response, and then long-term recovery.