The Journal of Finance· 2026Q1
Money to Burn: Crowdfunding Wildfire Recovery
- 5citations
- Q1SCImago
- 2026year
Short summary
Higher-income households are 12 percentage points more likely to crowdfund wildfire recovery and raise over 25% more than lower-income households, even when property losses are equal.
AI-generated from the title and abstract; the full text is not read.
Key points
- Higher-income households are 12 pp more likely to crowdfund wildfire recovery.
- Higher-income households raise over 25% more in crowdfunding, controlling for property losses.
- Disparities are driven by unequal access to social capital: broader donor bases, more nonlocal ties, and greater peer advocacy.
- Online donors appear influenced by social pressure, mirroring national patterns.
AI-generated from the title and abstract; the full text is not read.
Abstract
ABSTRACT Person‐to‐person crowdfunding is an increasingly important form of disaster relief, yet its distribution is poorly understood. Linking GoFundMe campaigns from a major wildfire to property and household credit records, we find that higher‐income households are 12 pp more likely to have campaigns and raise over 25% more, holding property losses constant. These disparities reflect unequal access to social capital: broader donor bases, more nonlocal ties, greater advocacy by friends, and more generous donors. Donors appear influenced by social pressure in online crowdfunding. These mechanisms mirror national patterns and underscore crowdfunding's limitations as a tool for equitable disaster relief.
The authors' abstract, as published at the source. The Journal of Finance, 2026 · DOI ↗
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