GoFundMe faces lawsuit over deceptive donation tips

GoFundMe is facing a federal lawsuit in Illinois alleging the company deceptively adds automatic tips to donations. The lawsuit, filed by Sandra Donovan and Ebony Baker, claims these tips go to the company rather than the intended recipients and that the platform makes them difficult for consumers to remove.

The legal challenge also disputes how GoFundMe describes its revenue model. While the site states it has a ‘0% platform fee for organizers’ and relies on donor generosity, the lawsuit alleges this is false. It claims the company instead funds its services by charging charitable organizations significant transaction fees on each donation received.