AG James Shreds GoFundMe Over Unauthorized Charity Fundraisers

New York Attorney General Letitia James has taken a hard stance against GoFundMe, demanding the platform cease and desist from creating over 1.4 million unauthorized charity fundraising pages. AG James, along with a coalition of 19 other state attorneys general, warns that this activity may have breached charitable solicitation laws and consumer protection regulations.

In a letter sent to GoFundMe, the coalition demands immediate evidence of all removed pages, confirmation of new practices to protect charities, and proof of changes to SEO practices that potentially misdirected donors. The incident highlights concerns over donor trust and the misuse of charity logos and descriptions.

GoFundMe has admitted fault and pledged corrective action, including the removal of unauthorized pages. However, the coalition is pressing for tangible proof of compliance within 14 days, with a promise to take further investigative steps if needed.

The coalition’s concerns were exacerbated by instances where donation pages featured incorrect charity information and failed to disclose that funds went through donor-advised funds instead of directly to the intended charity. This has raised questions about how GoFundMe vets charity information and ensures accurate fundraising practices.

Attorney General James emphasized the importance of transparency in charitable giving, stating, “When Americans open their wallets to support a charity, they deserve to know exactly where their money is going.” The case underscores the need for robust oversight in online fundraising platforms.

This action by AG James and the coalition aims to safeguard charities and donors from potential deception and misuse of funds, ensuring that charitable contributions are directed to legitimate causes.