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Alaska Sues Crowdfunding Sites for Nonprofit Violations

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Alaska sues six crowdfunding sites for violating Charitable Solicitations Act, setting up unauthorized donation pages for nonprofits, charging fees, and causing confusion among donors. The state demands court action to shut down pages, release funds, and impose penalties.

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Alaska Sues Crowdfunding Sites for Nonprofit Violations

Anchorage News Today | 2 Min News | The Daily News Now!

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Anchorage News Today | 2 Min News | The Daily News Now!Alaska Sues Crowdfunding Sites for Nonprofit Violations. Machine-transcribed; use the interactive transcript above to jump the player to any line.

Here's more Anchorage news for March 11th, Alaska filed civil lawsuits Tuesday against six crowdfunding sites. The state claims go fund me, PayPal, charity navigator, pledging technologies, just giving and network for good, violated its charitable solicitations. Act thousands of times. They set up donation pages for Alaska nonprofits without consent or registration as required since 1993. These platforms scraped public IRS data on nearly 1.5 million nonprofits nationwide to create the pages. In many cases, they charged fees, took tips, or held money in third party accounts until charities claimed it. Non-profit leaders say this impersonates groups and hurts real fundraising efforts. After last fall's typhoon hit Western Alaska, confused donors used these links and some gifts never arrived or took weeks to process. These also struggled to thank supporters, damaging long-term ties. The suits demand court shut down the pages, released all funds to the nonprofits and imposed

penalties from 1,000 to 25,000 dollars per violation. Officials learned of the issue from California probes, but felt national responses were too soft. Go fund me adjusted its pages to be opt in only after feedback, yet some defendants sites still show Alaska pages as of Tuesday. Many general dozen these Stephen Cox stressed that a last-can-generosity depends on trust. Warning donors might support causes without the charities, even knowing appreciation to our sponsor for backing this episode. It looks like a pillow, it sounds like headphones, built for comfort and sound, S-O-L-I-S-O-L-Pillow.com.

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