Lawsuit Alleges GoFundMe Auto-Selects Tips That Benefit Company, Not Recipients

Two donors have filed a federal lawsuit accusing GoFundMe of automatically preselecting a tip at checkout that benefits the company rather than the intended recipients — and making it difficult for donors to remove. The complaint, filed in Illinois federal court, names plaintiffs Sandra Donovan of Illinois and Ebony Baker of Georgia and was obtained by The Independent from ClassAction.org.

What The Lawsuit Says

The suit alleges that when donors attempt to contribute to fundraisers on the platform, GoFundMe presents an opt-out tip that is preselected by default. According to the complaint, "once automatically added, GoFundMe makes the 'tips' difficult to remove, forcing consumers to hunt around for a way to remove them."

GoFundMe has been accused of deceptively adding 'tips' to donations that go to the company and not helping others (GoFundMe)

Fees And Transparency Concerns

The plaintiffs challenge GoFundMe's on-site wording that reads: "GoFundMe has a 0% platform fee for organizers and relies primarily on the generosity of donors like you to operate our service." The complaint calls that description misleading, arguing that GoFundMe funds its service through transaction fees charged on each donation.

GoFundMe discloses a transaction fee on its site and the complaint highlights the specific rates: organizers created by individuals and businesses are charged 2.9% of each donation plus $0.30, while certified nonprofits are charged 2.2% plus $0.30.

Donors expect 'that their money will go where they intend—toward helping others, not toward undisclosed or preselected middleman fees like the 'tips' charged by GoFundMe,' the lawsuit said (GoFundMe)

"Donors act quickly, often emotionally, and with the reasonable expectation that their money will go where they intend—toward helping others, not toward undisclosed or preselected middleman fees like the 'tips' charged by GoFundMe," the complaint states.

Relief Sought

Donovan and Baker say they "paid money they did not knowingly authorize, conferring an improper financial benefit on GoFundMe" and are asking the court to certify the case as a class action. Their lawyers have asked for a jury trial and seek injunctive relief to stop the alleged deceptive practices as well as restitution of funds they call "ill-gotten gains."

The Independent requested comment from GoFundMe. The case highlights broader questions about disclosure practices and how fundraising platforms present fees and optional charges to donors, particularly in emotionally charged situations.