Alaska Sues GoFundMe, PayPal Over Unauthorized Charity Pages

GoFundMe, PayPal, Charity Navigator, JustGiving, Pledgeto, and Network for Good are named in the lawsuits.

The platforms allegedly created fundraising pages for over 1 million nonprofits nationwide without consent, including thousands in Alaska.

Alaska claims this violates the state’s Charitable Solicitations Act and Consumer Protection Act.

The Foraker Group, an Alaskan nonprofit support organization, praised the legal action.

GoFundMe stated that the donations were directed to the intended organizations and that they have since removed unclaimed pages and made the process opt-in.

Fees and Reduced Donations:: Platforms may take fees or optional tips, reducing the amount charities receive.

Outdated Information:: Unauthorized pages may display outdated or inaccurate information.

Competition with Existing Campaigns:: These pages can compete with a nonprofit’s own fundraising efforts.

Lack of Donor Information:: Nonprofits may be prevented from knowing who donated and when, hindering donor stewardship.

Q: Why is Alaska suing these platforms?

Q: Which platforms are involved in the lawsuit?

Q: What is Alaska seeking in the lawsuits?

Verify that any donation page you support is officially authorized by the nonprofit.

Be aware that third-party platforms may take fees that reduce the amount reaching the charity.

Nonprofits have a right to control fundraising in their name, including the strategies, vendors, and donor relationships they manage.