Utah’s community nonprofits are built on trust.
Every day, they earn that trust by serving veterans, feeding families, supporting children, and caring for neighbors in crisis. They show up when it matters most.
That work depends on a simple promise: when someone gives, their donation supports the cause they intended. Today, that promise is being put at risk. A surge of hundreds of unethical online fundraising platforms is stepping into the middle of the giving process, positioning themselves between donors and the missions they want to support, often generating revenue from every transaction.
This is not just a nonprofit issue. When giving is disrupted, it is families who go without support, veterans who lose access to services, and communities that lose vital resources.
Stand with UNA to protect trust, strengthen communities, and ensure every donation reaches the people it is meant to help:
- Endorse the ethical fundraising principles below to help protect nonprofits, donors, and the communities they serve
- Share these principles widely with nonprofits and donors across Utah
- Urge platforms to operate with transparency, consent, and accountability
Principles for Ethical Online Fundraising
To protect nonprofits, donors, and the communities they serve, the Utah Nonprofits Association joins partners across the country in advancing four essential principles for ethical online fundraising. These standards are simple, practical, and urgently needed to restore trust in charitable giving. (Scroll down for a deeper dive into these principles.)
Nonprofit Consent
Nonprofits must have the power and agency to decide for themselves how and when to engage with online fundraising platforms before they solicit or collect donations.
Transparency
Donors must have the power and information they need to decide whether to make a donation through an online fundraising platform.
Partnership
Online fundraising platforms must recognize nonprofits as valued, equal partners.
Accountability
Online fundraising platforms must be accountable to nonprofits, donors, the public, and the appropriate regulators.
What Is Happening Now
Many online fundraising platforms are operating in ways that harm nonprofits and mislead donors. Without clear standards or oversight, these practices are becoming more widespread and more damaging.
Across Utah and the country, platforms are raising money in nonprofits’ names without permission, collecting fees and tips from donations, and inserting themselves between nonprofits and their supporters.
This is not a future risk. It is happening right now, affecting organizations of all sizes and the communities that rely on them.
Deeper Dive
Nonprofit Consent
Nonprofits must have the power and agency to decide for themselves how and when to engage with online fundraising platforms before they solicit or collect donations.
Online fundraising platforms must:
- Obtain the written consent from an authorized representative of the nonprofit before soliciting or collecting donations on their behalf.
- Secure written consent from an authorized representative of the nonprofit before using a nonprofit’s logo, branding, images, or messaging, including in any promotional materials or fundraising efforts.
- Only use logos, branding, images, or messaging affirmatively provided by the nonprofit.
Transparency
Donors must have the power and information they need to decide whether to make a donation through an online fundraising platform.
Online fundraising platforms must:
- Provide key information to donors in a manner that is clear and easy to see and understand, in a minimum font size, and not hidden or buried in small text or terms and conditions.
- Ensure donors know at the point of donation whether their donation is tax-deductible and the name of the organization that will receive their donation.
- Inform the donor when the donation is received by the nonprofit.
- Provide donors the opportunity to designate alternative nonprofits if the platform cannot reach the original choice or allow donors to get a full refund including fees.
- Disclose all fees, charges, and suggested “tips” even if applied by a separate entity - in a font size equal to or greater than any other type on the page - at the donation point so that the donor can clearly see the net amount that the nonprofit actually receives.
- Make it clear to donors whether tips are provided to the online fundraising platform or the nonprofit, separate out the options for donors to cover processing fees from a suggested tip rather than combining both into one option, and never make suggested tips the default.
- Ensure the public can readily find and understand the online fundraising platform's business model, including how it generates revenue through fees and tips.
- Disclose whether the online fundraising platform is a nonprofit or for-profit entity, and whether the platform uses a donor-advised fund (DAF) rather than sending the donation directly to the charity. Platforms should inform donors what a DAF is, any fees associated with the DAF, the length of time it may take for a gift to be received by the charitable nonprofit, and whether the DAF has the ability to redirect gifts to other charitable recipients if it chooses to.
- Give donors an easy way to opt-out of future marketing communications.
Partnership
Online fundraising platforms must recognize nonprofits as valued, equal partners. Online fundraising platforms must:
- Inform the nonprofit within 7 days of any new campaign that seeks to raise funds for the organization.
- Provide donors with a link to the nonprofit’s website, if available.
- Transfer all donations electronically, or post physical checks by mail, to the nonprofit within 30 days (receipt of physical checks may take longer).
- Not use paid search engine optimization unless the nonprofit consents.
- Enable long-term nonprofit stewardship of donors. The default should be to provide nonprofits with donor information to allow nonprofits to build long-term relationships with donors. Provide nonprofits that choose to engage online fundraising platforms the ability to accept anonymous donations.
- Maintain on the platform’s website key information about fundraising campaigns for at least one year, including the status of the donation. Checks issued to designated nonprofits should include a unique campaign ID number that can be used to locate the campaign online.
- Ensure implementation is safe and user-friendly. Platforms must redress serious implementation issues, such as unauthorized individuals claiming donations and the inability to remove pages without first agreeing to the platform’s terms and conditions or sharing sensitive banking information.
- Provide nonprofits that voluntarily register with the platform the ability to add/edit/delete their logo, profile information, etc.
- Ensure nonprofits that consent to engaging with online fundraising platforms can still opt-out of specific campaigns led by the platform, or to opt-out of individual donations.
- Not require nonprofits to register or agree to terms and conditions in order to remove their organization from the platform. Registration should be free of charge.
- Clearly post all policies and procedures on the website, and do not require nonprofits to waive these rights as a condition of registering with the platform.
- Create an easy process for nonprofits to report campaigns that they believe are fraudulent or misleading. Such a reporting process must ensure timely review by the platform, a determination after review, and notification to the organization. Any reported campaign must be frozen until the issue is resolved. Accountability Online fundraising platforms must be accountable to nonprofits, donors, the public, and the appropriate regulators. Online fundraising platforms must:
- Comply with all applicable state laws.
- Support reasonable accountability measures under state and federal law for violations by online fundraising platformsin order tohold bad actors accountable.
- Publicly report on at least an annual basis to donors, recipients, and government regulators on the number of donations received by nonprofits, the total number of donations redirected or refunded, net dollars given to each nonprofit, all fees collected by the platform, and other relevant information.
- Engage regularly with the nonprofit community and appropriate state officials to improve the partnership between nonprofits and online fundraising platforms.