LITTLE ROCK — Attorney General Rutledge, together with 23 state Attorneys General and Secretaries of State, announced an agreement with PayPal Charitable Giving Fund, Inc. (PPGF) to ensure donors receive adequate information and disclosures when making charitable contributions through the Paypal’s online fundraising platform. PPGF is the charitable arm of PayPal, Inc. PPGF is a 501(c)(3) nonprofit corporation that allows donors to contribute funds electronically to PPGF and select a charity that will ultimately receive the benefit of their contribution. However, in some instances, PPGF redirected donors’ contributions from the charity selected by the donor to other organizations with similar purposes without informing donors.

“Arkansans are extremely generous, but they need assurances that any donation made goes directly to the intended source,” said Attorney General Rutledge. “As a result of today’s settlement, online donors will have the information and confidence they need to make informed decisions about their charitable contributions.”

PPGF adopted the following reforms to its disclosures to ensure that donors know:

The consumer is contributing to PPGF

Provides a timeframe in which a selected charity may receive funds directed to PPGF from the consumer

Any implication of being an enrolled rather than an unenrolled charity on the PPGF platform

PPGF also agreed to notify donors when it redirects a donor’s charitable contribution to an organization other than the one selected by the donor. PPGF will provide regulators with future campaign data to ensure the organization is complying with its obligations under the agreement.

In the agreement, PPGF will make a payment of $200,000 to the National Association of Attorneys General for deposit into the NAAG Charities Enforcement and Training Fund.

In addition to Arkansas, the multistate as led by Connecticut also includes: Colorado, District of Columbia, Idaho, Illinois, Iowa, Kansas, Kentucky, Louisiana, Minnesota, Mississippi, Nebraska, Nevada, New Hampshire, New York, North Carolina Secretary of State, Ohio, Oklahoma, Oregon, Pennsylvania, Texas and Wisconsin.

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