The Foraker Group

We recently alerted you to the unauthorized use by GoFundMe of 1.2 million nonprofits on their online giving platform. GoFundMe has issued an apology and offered steps to walk back their practice of using the names, logos, and other key identifiers of nonprofits without their knowledge or consent. At the same time, they have been charging exorbitant fees or “tips” to the for-profit vendor. Our alert also provided a link for authorized users of each nonprofit to remove their organization from the GoFundMe website. If you have not taken those steps, do it today.

This past week, we learned that these unethical fundraising practices of both using nonprofits information without consent and charging high fees is quickly becoming common in the industry, with Charity Navigator being the latest in a much longer list of online giving platforms to implement these highly questionable practices. Not only are they unethical, but the practice is also confusing to donors.

Why the concern?

To be clear, companies with third-party fundraising mechanisms that use your organization’s name, logo, and reputation without your consent do not have authorization to do so. This lack of consent and control and fundraising off your brand should not be normalized or tolerated and in some states the practice violates solicitation laws.

What’s next

Third-party fundraising software is a popular tool for nonprofits, but trust and consent are key, as is complying with all state laws.

Nationally, Foraker is working with our partners to determine a way forward that can ensure nonprofits and donors (including their data and donations) are protected. We are still examining whether these companies are aligned to Alaska online solicitation laws. We will keep you informed as we learn more.

The office of California’s Attorney General is looking into funding distribution disruptions by Flipcause, and there is an exploration in Oregon for a class action lawsuit against GoFundMe. We can connect you to both inquires if you are interested in getting more information.

In some states, like Tennessee, solicitation laws prevent this practice. Because of this, Charity Navigator has agreed to remove unauthorized pages. Again, we are working to determine if that is the case in Alaska.

What you can do

It should be your choice whether or not any platform fundraises for you, and it must be done with terms you agree to.

We urge you, just like you did with GoFundMe, to take a stand to protect your mission and your donors and let these companies know that philanthropy in your name and without your consent is not a way to make a profit.

If you are concerned, contact these firms and demand that they remove your nonprofit from their unauthorized donation pages.

• If you need the steps for GoFundMe, you will find information here.
• If you have specific questions about Charity Navigator, email them
• If you want to try the steps outlined for Tennessee nonprofits, you will find detailed instructions here.