How to create an Emergency Fund to respond to the climate crisis

The year 2024 was the hottest ever recorded on the planet. Driven by the climate change caused by human action, record temperatures have triggered an escalation in extreme weather events, such as prolonged droughts, heat waves, scarcity and excess rainfall. 

In Brazil, were registered 1,690 natural disasters, the third largest number in the historical series. About 53% of alerts issued were related to geological hazards, such as landslides, while the other 47% dealt with hydrological risks, such as floods and overflows. 

The human impact was also profound: 251 lives lost, almost a million people displaced – the second highest number since 2009. It was the fourth deadliest year since 1991, highlighting the severity of the consequences when the climate emergency is combined with a lack of preparation and investment in prevention. 

In this scenario, Emergency Funds emerge as a solution fast, structured and transparent response to these disasters. 

The importance of Emergency Funds 

THE climate crisis requires agility, organization and responsibility in the mobilization of resources. However, the climate finance still represents less than 2% of global philanthropic giving. This reveals the huge gap between the urgency of the crisis and the financial response capacity. 

It is precisely here that the Emergency Funds stand out as powerful tools. They allow a immediate reaction to disasters, with resources allocated from strategic way to mitigate environmental and social impacts in affected areas.

What are Emergency Funds? 

You Emergency Philanthropic Funds are private, non-profit mechanisms created to collect, manage and allocate donations of individuals and legal entities in times of crisis. 

The performance of these funds gained great visibility in 2020, with the pandemic Covid-19. The health crisis has fueled a wave of solidarity and collaboration between civil society, businesses and governments. The results demonstrated the strength of unity to face emergency challenges with real impact. 

How to create an Emergency Fund? 

THE Sitawi Finanças do Bem has extensive experience in structuring and management in Emergency Funds to respond to disasters and critical situations. Create a fund with the Sitawi it's simple and safe: 

1 – Definition of the cause and the founder 

You or your organization indicate the cause you wish to support. The capital can be contributed in a single payment or over time. The fund can be opened to other individuals or legal entities who also wish to contribute. 

2 – Mandate and governance 

The fund's objectives, investment and disbursement rules, governance and accountability structure are established – all agreed with the partners

3 – Financial and strategic management 

Sitawi controls the flow of resources, with monthly reports and strategic guidance to maximize the impact of actions. 

4 – Disbursement of resources 

The amounts raised are used in accordance with the fund's objectives, whether for direct actions in affected territories, acquisition of supplies, support for local organizations or reconstruction of essential structures. 

Why create an Emergency Fund? 

Create a Emergency Fund is an effective way of transforming solidarity into concrete action, with transparency, agility and measurable impact. It is also an invitation to shared responsibility in front of a crisis that can no longer be ignored. 

If you or your organization wants to lead a structured and high-impact response to climate emergencies, contact with Sitawi and learn how to create your fund.

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