What's Happening?
GoFundMe has set up donation pages for numerous U.S. museums without informing the institutions. This initiative aimed to support nonprofits by connecting them with potential donors. However, museums were surprised to find these pages created without their
consent, potentially diverting donations from their official channels. GoFundMe charges transaction fees, reducing the amount received by museums. After receiving feedback, GoFundMe acknowledged the confusion caused and has since made changes, including making these pages opt-in only.
Why It's Important?
The creation of donation pages without prior notice raises concerns about transparency and the impact on established fundraising strategies. Museums rely heavily on donations for their operations, and unauthorized pages could disrupt their efforts to cultivate major donors. The transaction fees imposed by GoFundMe further reduce the funds available to museums, affecting their financial health. This situation highlights the need for clear communication and collaboration between crowdfunding platforms and nonprofits to ensure mutual benefit.
What's Next?
GoFundMe has revised its approach, allowing museums to opt-in to the donation pages. Museums are advised to check if pages were created for them and decide whether to participate. This incident may prompt museums to review their online fundraising strategies and explore partnerships with crowdfunding platforms. Additionally, GoFundMe's response indicates a willingness to adapt its practices based on feedback, which could lead to improved relations with nonprofits in the future.
