Charitable Crowdfunding: Trust But Verify. But How?

Americans are an empathetic bunch as the recent GoFundMe campaign shows. But should they be more cautious?

A person posting as “R.b. “Razor” Sheldon on behalf of Amber Boyd” started a crowdfunding campaign to benefit the family of the challenged victim of the “Chicago torture video.”

With a $10,000 goal, the fund has raised over $139,000.

One potential donor, however, asks “Can you please provide any proof the family will receive these funds? Is the family involved in this campaign? As soon as I can verify, I will share it….” Another states that National Public Radio has verified it with the site. The NPR article states: “… a public relations representative for GoFundMe says the website will be working with the campaign organizer to ensure all money raised reaches the victim.”  http://www.npr.org/sections/thetwo-way/2017/01/05/508331652/4-people-in-custody-in-chicago-over-beating-live-streamed-on-facebook

However, GoFundMe’s terms of service say that: “we make no guarantee, explicit or implied, that any information provided through the Services by a user is accurate…” https://www.gofundme.com/terms/

https://www.gofundme.com/lets-show-the-chicago-victim-love

About JeffKoeppel

I am a corporate/securities attorney in the Washington, DC area. Prior to joining the firm, I was a Senior Attorney Advisor in the Division of Corporation Finance at the U.S. Securities and Exchange Commission. I am a member of the Bars of the States of Maryland, New York and the District of Columbia. You can also follow this blog on LinkedIn at: http://www.linkedin.com/pub/jeffrey-a-koeppel/0/63/5a9
This entry was posted in balance, Crowd Fund Act, Crowd Fund Act of 2012, Crowd Funding At the Margins, Crowd Funding Platforms, deposits, discrepancies, fraud, Funding Portals, Legislative Intent, review, unfair and deceptive practice and tagged , , , , , , , , , , , , , , , , , , , , , , , . Bookmark the permalink.

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