A group of nonprofits in Oregon has filed a class-action lawsuit against GoFundMe, alleging the company created fundraising pages without their consent and misrepresented their identities to donors.
Allegations of Unauthorized Fundraising Pages
The lawsuit claims GoFundMe used publicly available IRS records to collect data on approximately 1.4 million nonprofits across the United States. According to the complaint, the platform then used artificial intelligence to automatically generate donation pages that appeared to represent these organizations.
Nonprofits argue these pages were created without their knowledge or approval, potentially misleading donors into believing the campaigns were officially endorsed.
Claims of Financial and Reputational Harm
The plaintiffs say the alleged actions caused confusion among supporters and resulted in both financial losses and reputational damage. They also claim GoFundMe required organizations to “claim” these pages in order to access donations, which included agreeing to platform terms and fees.
Organizations Involved in the Case
Among the groups leading the lawsuit is the McKenzie Valley Long Term Recovery Group, which supports recovery efforts following the 2020 Holiday Farm Fire.
Other plaintiffs include:
- Commute Options for Central Oregon
- Outdoor Oregon Adventures
GoFundMe Responds
In response, GoFundMe stated that the pages were created to help users support nonprofit organizations, emphasizing that donations were directed to the intended groups. The company added that it has since made such pages opt-in and removed unclaimed listings following concerns raised last year.
Legal Proceedings Underway
The case has been filed in federal court in Eugene and could expand as additional nonprofits join the class action. The lawsuit seeks compensation for affected organizations, including damages and reimbursement of donations.
A judge has set deadlines for discovery and potential resolution discussions later this year.
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