Nonprofits affected by fraudulent GoFundMe scheme eligible to join class action lawsuit

Nonprofit organizations in Oregon and across the United States are taking legal action against GoFundMe for their unauthorized fundraising scheme that resulted in financial losses and reputational harm. The mega-corporation set up fundraising pages without permission for 1.4 million nonprofits, including prominent Oregon arts organizations like the Portland Art Museum, Portland Center Stage, and Oregon ArtsWatch.

These unauthorized pages closely resembled official pages, displaying detailed information about the organizations, such as logos, mission statements, and employer identification numbers. However, instead of channeling all donations to the intended nonprofits, GoFundMe levied a 2.2% transaction fee and an additional 30-cent per-donation charge for themselves. Moreover, donors were unknowingly charged a 14% to 16.5% “tip” that went directly to GoFundMe instead of the nonprofits.

The scheme sparked outrage within the nonprofit community and led to widespread criticism. The Nonprofit Association of Oregon (NAO) received complaints from members unable to claim their unauthorized pages, remove them, or contact GoFundMe for assistance. As a result, two law firms, including one based in Eugene, are preparing a class-action lawsuit against GoFundMe to recover lost revenue, challenge their predatory practices, and restore donor trust in the nonprofit sector.

Jim White, Executive Director of NAO, highlighted the importance of holding big tech companies like GoFundMe accountable for their actions. He encouraged affected nonprofits to visit the law firms’ dedicated site for more information on the lawsuit and potential terms. The legal action seeks to address financial losses, reputational damage, and the resource burden placed on nonprofits forced to navigate the aftermath of GoFundMe’s unauthorized fundraising activity.

The lawsuit aims to protect the integrity of charitable giving and defend nonprofit autonomy against exploitative practices by for-profit entities. By challenging GoFundMe’s misuse of donation streams and disregard for nonprofit organizational narratives, the legal action sends a strong message to corporations prioritizing profits over mission-driven philanthropy. It underscores the importance of upholding transparency, trust, and respect within the charitable sector while holding tech giants accountable for their actions.

In conclusion, the class action lawsuit initiated by Oregon and other affected nonprofit organizations against GoFundMe represents a crucial step in safeguarding the nonprofit sector’s integrity, financial stability, and public trust. By challenging unauthorized fundraising practices and seeking restitution for the harm caused, nonprofits aim to restore donor confidence and ensure that charitable giving remains a noble and transparent endeavor.