Tennessee Nonprofit Network is writing to make you aware of a critical issue impacting nonprofits in our state and around the country. 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 In some cases, GoFundMe included incorrect information, outdated logos, and other inaccuracies that compromise and misrepresent nonprofits’ brand, mission, strategy, and message.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. Tennessee Nonprofit Network 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. Note that Tennessee spent a good part of the day today attempting to remove your page.
- Review guidance here.
- If you choose not to claim your page or have particular issues removing the page for now, consider notifying your donors in the event that GoFundMe does not immediately remove your page.
- Share your experience or concerns with us so we can advocate collectively and push for stronger protections. Share your story with our friends at National Council of Nonprofits! Contact Senior Vice President Sarah Saadian at ssaadian@councilofnonprofits.org and Policy Director and Counsel Tiffany Gourley Carter at tcarter@councilofnonprofits.org.
We will keep you posted on updates or news about this unfortunate development