Alaska Sues GoFundMe, PayPal Over Unauthorized Charity Pages

In-Depth Analysis

The lawsuits center on the allegation that these platforms created donation pages using publicly available information without obtaining the consent of the nonprofits. This practice, according to the state, can lead to several issues:

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**Outdated Information:** Unauthorized pages may display outdated or inaccurate information.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

The state is seeking court orders to remove unauthorized pages and civil penalties for each violation, which could range from $1,000 to $25,000 per violation under Alaska’s Consumer Protection Act.

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FAQ

Why is Alaska suing these platforms?

For creating unauthorized donation pages for nonprofits without their consent, violating state laws.

Which platforms are involved in the lawsuit?

GoFundMe, PayPal Inc, Charity Navigator, JustGiving, Pledgeto, and Network for Good.

What is Alaska seeking in the lawsuits?

Court orders to remove unauthorized pages and civil penalties for violations of state laws.

Takeaways

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.

Discussion

Do you think these platforms should require explicit consent from nonprofits before creating donation pages? Share your thoughts!

Share this article with others who need to stay ahead of this trend!

Sources

Alaska accuses crowdfunding websites of violating law, using charities’ names without their consent Alaska sues GoFundMe, PayPal, others over thousands of unauthorized charity pages Attorney General Stephen Cox Sues FinTech Companies for Impersonating Alaska Nonprofits’ Identities and Deceiving Donors

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