FRANKFORT, Ky. — Attorney General Daniel Cameron today announced Kentucky entered a multi-state settlement with PayPal Charitable Giving Fund, Inc. (PPGF) to ensure donors receive adequate information and disclosures when making charitable contributions through the company’s online fundraising platform. Attorney General Cameron joins 22 other state law enforcement partners in announcing this settlement.
PPGF, the charitable arm of PayPal, Inc., is a 501(c)(3) nonprofit corporation that allows donors to contribute online to specific charitable causes. While PPGF does not collect fees from donors or charities for this service, a charity receives contributions more quickly if the charity maintains a PayPal account, a fact that was not adequately disclosed to donors. In some instances, PPGF redirected donors’ contributions from their designated charity to other organizations with similar purposes.
States nationwide joined the effort to investigate PPGF’s fundraising activities, including its disclosures, vetting practices, and treatment of charitable contributions. As part of the resulting settlement, PPGF agreed to adopt reforms to its disclosures to ensure that donors know:
• that they are contributing to PPGF;
• the timeframe in which a selected charity may receive funds from PPGF; and
• the implications of being an “enrolled” rather than an “unenrolled” charity on the PPGF platform.
“Today’s settlement ensures that Kentuckians who choose to donate online using the PayPal Charitable Giving Fund platform will have the information they need to make informed decisions about their charitable contributions,” said Attorney General Cameron. “Our Office of Consumer Protection works diligently to ensure that consumers can have confidence in the donation process, and I appreciate our partner states for working together to ensure a transparent system for donors.”
PPGF also agreed to notify donors when it redirects a charitable contribution to an organization other than the one selected by the donor. PPGF will provide regulators with future campaign data to ensure the organization is complying with its obligations under the agreement.
Finally, PPGF agreed to make a payment of $200,000 to the National Association of Attorneys General for deposit into the NAAG Charities Enforcement and Training Fund. The fund defrays costs associated with the investigation and litigation of cases brought by state regulators and provides training and education opportunities.
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