The FTC’s advice for online giving portals that collect on behalf of charities

Seventy-eight percent of Americans believe companies must do more than just make money – they must also positively impact society, according to the recent 2018 Cone/Porter Novelli Purpose Study. Not only did 79% of respondents say that they are more loyal to purpose-driven companies, but 73% said they would be willing to defend those companies. As for-profit businesses continue to find ways to demonstrate their positive social impact, one recent trend is by teaming up with online giving portals. Businesses such as online retailers and crowdfunding sites (like GoFundMe) are increasingly directing consumers to online giving portals that offer lists of charities to which consumers can donate. These online giving portals seem like a win-win for businesses and donors. They make it easy for businesses to collect funds on behalf of charities, and they offer donors a quick and simple way to donate to a cause they support. But, in a recent blog post, the Federal Trade Commission…

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