State Attorneys General Question GoFundMe Over Alleged Hidden Donation Charges and Unauthorized Charity Pages
A coalition of state attorneys general, led by New Jersey regulators, has raised serious concerns about GoFundMe after alleging that it created more than 1.4 million charity fundraising pages without authorization and charged donors additional fees they may not have known about.
Officials said the issue is how the online fundraising site constructed its donation mechanism. Regulators said the system automatically added a 16.5 percent “tip” during donations. Without manually removing the pre-selected fee, contributors may contribute more than intended. Authorities say the platform received this payment instead of the charity.
New Jersey Attorney General Jennifer Davenport wrote to charitable regulators and attorneys general from 21 states about the issues. The group warned that the platform’s design may have confused contributors who thought their complete donation would go to charity. Officials say default charges like these can be especially problematic during emergencies or urgent fundraising drives, when donors pay rapidly and may not notice additional fees.
State officials believe charitable giving requires openness. Davenport stressed that contribution platforms must clearly describe their methods so donors know where their money goes. She said default settings that encourage tips could decrease charity contributions if donors realize that part of their donation was diverted.
Besides donation fees, detectives worried about illegitimate charity pages. Regulators said the platform created charity fundraising pages without approval. These pages purportedly provide false or inadequate information about the charities, including gift distribution. Authorities warn that false information could mislead contributors and ruin the reputation of reputable nonprofits that depend on public trust.
Search engine optimization tactics utilized by the platform are also investigated. Regulators believe these techniques may have diverted online users to the platform’s illegitimate fundraising pages instead of charity websites. If donors went to those pages first, they might accidentally donate through the platform instead of the nonprofit they wanted to support.
GoFundMe says it has made modifications after hearing from organization leaders. The business spokeswoman confirmed that nonprofit fundraising pages are now fully opt-in after updating the platform. To prevent future concerns, the company deindexed unclaimed pages and disabled SEO capabilities by default.
The corporation said it will comply with regulators and disclose its modifications. Platform officials said they welcome the chance to discuss their responses to state authorities’ concerns.
Despite these guarantees, regulators worry about donor finances. State officials believe the platform’s former system may have caused donors to overpay. Because charitable giving typically occurs in emotional or urgent situations, regulators think transparency is crucial to prevent public generosity from being exploited.
GoFundMe must prove that the contested fundraising pages have been removed within 14 days, according to the group of attorneys general. Regulators also urged the corporation to explain how such pages handled donations and whether adjustments or refunds were needed.
Authorities claim the matter goes beyond financial charges and affects charity trust. Officials feel that donation platforms must be transparent and accountable to maintain trust in nonprofits.
Delaware, New York, Pennsylvania, and other state authorities joined New Jersey in raising concerns, highlighting the nationwide investigation. The report shows growing scrutiny of online fundraising platforms as digital donation tools become more popular in the US.
Officials are awaiting GoFundMe’s response to the required paperwork and updated procedures. The outcome may indicate whether online donation platforms require more regulation to ensure donor and charity openness.
Sources
New Jersey Office of the Attorney General
Coalition of State Attorneys General and Charitable Regulators
Official statements from GoFundMe spokesperson
