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[Sir_Crocodile]

Charitable donations made through PayPal’s Giving Fund platform may never reach their intended recipients, a federal class-action lawsuit filed Tuesday in Chicago has alleged.

PayPal’s charitable platform, which the company says raised more than $7bn in 2016, claims to allow individuals to give directly to “over a million charities”. But only a fraction of those charities actually receive the donations, the lawsuit alleges, because they aren’t registered with PayPal. Donations made to non-registered charities are held by PayPal for six months before being transferred to other not-for-profit organizations, according to the suit.

“We have no idea where the money is going,” said Chris Dore, one of the attorneys bringing the suit on behalf of Terry Kass and the North Shore Health Center. “We are trying to just get the money where it’s supposed to go.”

More here:

https://www.theguardian.com/technology/2017/feb/28/paypal-charity-donations-giving-fund-lawsuit

Pretty shocking they'd do something like this. I wonder if it affects the ebay thing where you can give money to a charity as you're purchasing an item too?

 

[MarionCB]

Hmm, Humble Bundle uses this too.

I was wondering about this "Giving Fund" but never checked it out properly. I kinda assumed the regulations concerning charities were pretty watertight at this point in time. Paypal always seems to be a special case somehow.

 

[Slayven]

Almost always a good idea just to give directly to the charity. One it makes sure they get it and two it maximizes the amount of the dollar they can use

 

[KHarvey16]

Almost always a good idea just to give directly to the charity. One it makes sure they get it and two it maximizes the amount of the dollar they can use

Apparently they were throwing in an additional 1% so they would actually get more through paypal than if you did it directly (assuming the charity was registered).

I was expecting a story about money going to things other than charity, but it's money going to a different charity if the one you picked didn't sign up an account with PayPal. Dumb to not make that transparent if the allegation is true and must be fixed but based on the title I was prepared for much worse.

 

[ReAxion]

paypal, are you jealous of all the press uber's getting lately?

 

[AMUSIX]

Apparently they were throwing in an additional 1% so they would actually get more through paypal than if you did it directly (assuming the charity was registered).

I was expecting a story about money going to things other than charity, but it's money going to a different charity if the one you picked didn't sign up an account with PayPal. Dumb to not make that transparent if the allegation is true and must be fixed but based on the title I was prepared for much worse.

It's going to other NPOs, not necessarily charities. You can set one up pretty damn easily, assign yourself and other named board members a salary, and then reap the rewards. The fact is, this money is just disappearing.

Of course, you might give to a charity supporting the fight against LGBT discrimination around the world, and, instead, your money is given to the team fighting to reinstate Uganda's Anti-Homosexuality Act. So, yeah, I suppose as long as it's going to any charity, then it's just fine....right?

 

[KHarvey16]

It's going to other NPOs, not necessarily charities. You can set one up pretty damn easily, assign yourself and other named board members a salary, and then reap the rewards. The fact is, this money is just disappearing.

The fact is? That is an allegation in a lawsuit. Let's see what the response is.

 

[AMUSIX]

The fact is? That is an allegation in a lawsuit. Let's see what the response is.

you're right, I chose the wrong words...the allegation is that it's disappearing. However, according to PayPal, it is a fact that it's given to another charity without the consent of the givers, which can easily lead to people supporting the opposite of what they thought they were given to. Then again, maybe PayPal is seeking out 'like' charities...but that leads to a donation for a local no-kill animal shelter being given to PETA.

 

[SatoAilDarko]

Hmm, Humble Bundle uses this too.

I was wondering about this "Giving Fund" but never checked it out properly. I kinda assumed the regulations concerning charities were pretty watertight at this point in time. Paypal always seems to be a special case somehow.

Humble Bundle was what first came to mind for me to.

I've given tons through it.