In a letter co-signed by a bipartisan group of 27 other like-minded state and territorial attorneys general, Attorney General Todd Rokita (R) expresses concerns to GoFundMe executives on behalf of consumers who utilized the platform. Under his statutory authority to protect consumers and regulate nonprofits, General Rokita dips into his investigatory toolbox to inquire into GoFundMe and their operations. He and his fellow attorneys general suggest that GoFundMe’s terms of service are ambiguous, raise accountability concerns, and have the potential to deceive consumers. They identify issues with the site, including a lack of clearly expressible standards regarding GoFundMe’s independent ability to freeze, redirect, or refund donations. “Hoosiers are generous,” AG Rokita notes. “And when they give money to a cause, it’s only logical to assume the money actually goes where it was directed. GoFundMe’s current terms of service are too vague to assure a donor that is the case – and I will get to the bottom of it.” The letter explains that: “Users engage with the GoFundMe platform with the fundamental expectation that their donation will be directed to its intended beneficiary fundraiser. If GoFundMe acts to subvert that altruistic relationship due to unpermitted activity, it should be under a clearly articulated and disclosed standard. Instead, GoFundMe’s Terms of Service state that GoFundMe can suspend or remove a user’s account, freeze a donation, or stop payment to a fundraiser for “any activity that GoFundMe may deem, in its sole discretion, to be unacceptable.” The GoFundMe platform serves an important purpose by facilitating charitable giving. However, the parameters under which a user’s donation may be blocked, frozen, re-directed to another fundraiser, or refunded without the user’s consent are unclear. While platforms like GoFundMe can and should act as conduits connecting donors and fundraisers, platforms like GoFundMe are not and should not be empowered to unilaterally make decisions regarding where donated funds will go or why. If GoFundMe is making opaque and unilateral decisions about which fundraisers are legitimate and which fundraisers to re-route donations to irrespective of initial donor choice, GoFundMe has likely crossed the line from fundraising platform to fundraiser itself. Such a role implicates significantly different regulatory schemes directed at ensuring transparency in charitable giving.” The 28 AGs request six specific actions to begin to help alleviate some of the identified problems.
