PayPal Charity Arm Settles For $200K Over Diverted Funds

Law360 (January 14, 2020, 10:11 PM EST) -- PayPal’s charity arm on Tuesday signed a $200,000 deal with officials from 22 states to settle claims that the nonprofit favored organizations with PayPal accounts and in some cases diverted contributions to different groups without telling donors.

The PayPal Charitable Giving Fund Inc. agreed to make additional disclosures to donors and notify them when donations are redirected to a similar organization instead of the one they chose, according to the New York Attorney General’s Office. The nonprofit must also tell donors when the organizations they donate to will receive the money.

The PayPal Giving Fund serves as a go-between for donors...

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