Ohio Reaches Settlement With PayPal Over Charity Donations
Ohioans who have made online donations to their favorite charities through the PayPal Giving Fund to avoid fees might be surprised by details of a new multistate settlement. Ohio is one of 22 states and the District of Columbia agreeing to a deal to change the way that fund does business.
Let’s say you decided to give $100 to a local group through the PayPal Giving Fund because it promised to waive its online fees. It’s possible that local charity never got that money.
Why? Because the donation actually went to PayPal Giving Fund. It determines which charities are eligible for donations. And if the charity is deemed not eligible, PayPal Giving Fund can designate those dollars to another charity, without letting you or the designated charity know about the switch.
David O’Neil with the Ohio Attorney General’s Office says a new multi-state agreement changes things.
“This is definitely a win for donors and for charities themselves,” O'Neil said.
Under the deal, PayPal Giving Fund must make it clear to donors that the money is going to the fund and not directly to the charity. If the intended charity is not awarded the money, it must go to a similar charity and the donor must be notified.