Nonprofits hurt by GoFundMe scheme can join class action lawsuit • Oregon ArtsWatch
Nonprofits impacted by GoFundMe's unauthorized fundraising scheme can now join a class action lawsuit seeking to recover lost revenue and damages.Summary
GoFundMe created unauthorized fundraising pages for over 1.4 million nonprofit organizations, including many in Oregon, and retained portions of the donations through transaction fees and optional 'tips.' This scheme, which included using organization details like logos and mission statements, diverted funds from the nonprofits and potentially damaged their reputations. The Nonprofit Association of Oregon (NAO) reported numerous members were negatively affected, experiencing difficulties claiming or removing the unauthorized pages.
Although GoFundMe later apologized and reversed the practice, problems persisted, prompting a class action lawsuit filed by Arnold Gallagher in Eugene, Oregon, and Watts Law Firm in Austin, Texas. The lawsuit aims to recover lost revenue, fees, reputational harm, and the costs incurred by nonprofits in addressing the issue.
The NAO encourages impacted nonprofits to learn more about the lawsuit and potentially join the action, hoping to hold GoFundMe accountable and protect the integrity of charitable giving. The legal action seeks to defend the autonomy of nonprofit organizations and prevent for-profit companies from exploiting donor trust for their own financial gain, as stated on the law firms' dedicated website.
(Source：Oregon ArtsWatch)