“Hurricane Helene: The challenge of underinvestment

Floods don’t attract as much funding as hurricanes and tropical storms. But what happens when the hurricane leads to flooding, as Helene did in six states, causing upwards of $53 billion in North Carolina alone? Insurance companies also treat flooding differently, so philanthropic funding is needed even more.

Hardest hit by flooding was the Central Appalachia region, where years of disinvestment by government and philanthropy left the region ill prepared. “Appalachia receives a fraction of the philanthropic support other regions see, with funders in rural Central Appalachia having access to only one-tenth the resources of their urban counterparts,” says Ryan Eller, executive director of the Appalachia Funders Network. “This disparity is all the more striking considering the magnitude of challenges here, even before the storm—broadband, health care, and food deserts; intergenerational poverty born from extraction; and the ongoing opioid crisis.” The losses from Helene went beyond infrastructure and financial losses—lives, ecologically rich lands, and irreplaceable cultural sites. “It’s a deep wound to the fabric of our region.”

On average, over 50% of disaster relief funding goes to immediate response and relief, while just 10% goes to reconstruction and recovery. However, some funders, like the Lilly Endowment, have provided both kinds of grants. Their first two grants split $15 million between American Red Cross and Salvation Army for direct activities or subgrants across the six affected states. A third grant provides $7.5 million to the North Carolina Community Foundation to support recovery needs across Western North Carolina.

What can philanthropy do?

An important next step is for funders to honor their pledges. Funders that have yet to award grants might consider investing in capacity building and resilient rebuilding.

Investment in both hard infrastructure and community preparedness are critical. People may know what they need to do to secure their homes or to prepare for evacuation or sheltering in place, but they may not have the resources to make it happen. Investments in parametric insurance that are triggered by floods or power outages could help low-income families stay safe.

In the U.S., Central Appalachia is most at risk of struggling to recover because they were already experiencing underinvestment before suffering immense damage. Funders need to build long-term relationships with community organizations, partner with other funders, provide flexible funds, and commit to investing long-term to build back better.”