UPDATE: GoFundMe Issues Apology and Next Steps for Nonprofit Pages

UPDATE: 

The National Council of Nonprofits (NCN) raised concerns after GoFundMe created fundraising pages for over a million nonprofits without their knowledge or consent. In response, GoFundMe has issued an apology and outlined specific steps to remove the unauthorized pages, implement safeguards to prevent future harm, and rebuild trust with the nonprofit community. 

Here is the statement from NCN:

“The National Council of Nonprofits was deeply concerned by GoFundMe’s creation of fundraising pages for more than a million nonprofits without their knowledge or consent. Nonprofits depend on transparency, trust, and the ability to control their own fundraising. GoFundMe’s actions were a breach of that trust.

On behalf of our network of nonprofits across the country, NCN raised these concerns directly with GoFundMe and were pleased with GoFundMe’s openness and self-reflection. As we and others urged, the company has issued an apology to nonprofits and outlined the specific actions they will take to remove the unauthorized nonprofit pages, prevent further harm, and rebuild trust with nonprofits. We welcome this step by GoFundMe and the speed with which they took corrective action. 

This incident is a reminder that nonprofits must always retain the power to decide for themselves how and when to engage with other partners, and that the expertise of nonprofits should be sought and valued in advance of any effort related to their work. We will continue working to ensure that nonprofits’ voices are respected, their brands are protected, and public trust in the sector remains strong.”
 

Recently, GoFundMe - the crowdfunding platform - created on its website donation pages for 1.4 million nonprofit organizations without their knowledge or consent.

This initiative creates significant concerns for nonprofits:

• Lack of Consent - Nonprofits were not informed of these donation pages, nor were they given the opportunity to consent to any formal relationship with GoFundMe. Nonprofits must have the power and agency to decide for themselves how and when to engage with third parties, particularly on issues as important and sensitive as donation solicitation.
• Confusion for Funders and Supporters - The GoFundMe pages have created confusion for donors and supporters who are unsure of the legitimacy of the fundraising pages. In some cases, GoFundMe included incorrect information, outdated logos, and other inaccuracies that compromise and misrepresent nonprofits' brand, mission, strategy, and message.
• Fees and Other Expenses - Donations made through the GoFundMe pages are charged processing fees that cut into the support provided to nonprofits, and donors are asked to provide a generous tip to support GoFundMe's efforts. These tactics ultimately result in fewer resources for nonprofits than if donors contributed directly through the organization.
• SEO Optimization - GoFundMe has initiated SEO optimization as the default for the donation pages to improve their visibility when individuals search for information about nonprofits online. This could result in GoFundMe's pages ranking higher than the nonprofit's own website, pulling away potential donors and supporters.
• Implementation Challenges - Without adequate safeguards in place, nonprofits report serious issues, ranging from unauthorized individuals claiming donations and the inability to remove pages without first agreeing to GoFundMe's terms and conditions or sharing sensitive banking information.

Too many nonprofits simply do not know about GoFundMe's actions, which may harm their current and future fundraising efforts, damage brand reputations, and cause confusion. Ultimately, this initiative threatens to undermine public trust in nonprofits, which is the foundation that allows nonprofits to do their vital work in communities every day.

GoFundMe has taken some steps to address the concerns raised by nonprofits, but these steps do not go far enough to repair the harm. The New Hampshire Center for Nonprofits and the National Council of Nonprofits are urging GoFundMe to take immediate further action to rectify the situation.

Immediate Action for Nonprofits:

• Check if your organization has an unauthorized GoFundMe page.
• Decide whether to claim, edit, or request removal of the page.
• Review guidance here.
• Share your experience or concerns with us so we can advocate collectively and push for stronger protections. Share your story with NCN Senior Vice President Sarah Saadian at ssaadian@councilofnonprofits.org and Policy Director and Counsel Tiffany Gourley Carter at tcarter@councilofnonprofits.org.

At the Center, we will continue to monitor the situation and give you updates as we collect more information.