Dear Neighbors,
With the federal government and ICE agents roaming our streets, causing chaos and terror, many of our neighbors—both documented and undocumented—have been relying on mutual aid and community-led efforts, such as crowdfunding, to meet basic needs and secure financial support.
Out of an abundance of caution, Attorney General Keith Ellison has released a guide to help Minnesotans navigate best practices for local crowdfunding efforts.
Consumer Alert: Crowdfunding Reminder from Attorney General Keith Ellison
Here are his recommendations:
If you are donating through GoFundMe or other platforms
- Before donating: Research the organizer of the crowdfunding campaign, the cause, and how the money will be used. Do public facts support the organizer’s claims? Will the website charge a fee? How will the organizer handle and safeguard donations?
- Donating to help a specific person: If you are donating to people you don’t know, look for specific information about the situation that can be verified.
- Donating to an organization: Donors should look for charities they already know and trust. To be sure that your money is going where you want it to go (and to minimize the chance of any extra fees being taken from your donation), consider donating directly through that charity’s own website, instead of through a crowdfunding page.
- Donating smartly: Be wary of charities that spring up overnight in the wake of a disaster or tragedy, that have names that sound like well-known charities, or that otherwise raise red flags. If there is reason to suspect a charity might not be legitimate, contact the Minnesota Attorney General’s Office before donating.
If you are fundraising through GoFundMe, social media, or other platforms
If you are an individual or business raising money to help your communities through a crowdfunding campaign on GoFundMe, social media, or another platform, you should be aware that certain laws and duties could be triggered by that activity. Not all fundraising is charitable—raising money to benefit a specific named individual, business, or family is not “charitable” under the law.
On the other hand, if you fundraise money or collect goods for a general charitable purpose to help the greater good—such as food or supplies for families in need in your community—that conduct comes with important duties and responsibilities under the law. These laws apply to all people, groups, and businesses fundraising for charity—not just nonprofits or 501(c)(3) entities. Specifically:
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There are laws on what you cannot or must say or do when soliciting donations from the public, including avoiding any deception, making appropriate disclosures, and registering with the Attorney General.
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There are also specific duties that apply when holding on to funds that are intended to benefit the public, including holding them separately from your personal funds, tracking them with care, and using them strictly for their intended purpose.
If you are concerned about fundraising activity
The Attorney General’s Office has already received reports and complaints about fundraising efforts in light of current DHS activity and evaluates all complaints with seriousness. For those with concerns:
Not all crowdfunding—like efforts raising money for specific families—is charitable and within the AGO’s authority. If you are concerned that someone is using the name of an individual or family to steal funds from generous donors, contact your local criminal law enforcement authorities.
The Better Business Bureau’s Wise Giving Alliance and the Federal Trade Commission publish information and tips on crowdfunding on their websites, https://give.org/ and https://consumer.ftc.gov/
Donors may also contact the Minnesota Attorney General’s Office for more information about crowdfunding, to research charities on the Office’s website, or to file a complaint on our website or as follows:
Office of Minnesota Attorney General Keith Ellison
445 Minnesota Street, Suite 600
(651) 296-3353 (Twin Cities Calling Area)
(800) 657-3787 (Outside the Twin Cities)
(800) 627-3529 (Minnesota Relay)
Please reach out to my office if you have any additional questions or concerns. My goal is to ensure you have the tools and resources necessary to feel confident in supporting our neighbors. While we encourage those who are able to give financially to do so, we ask that you give with an abundance of awareness. Minnesotans are notoriously generous people, and we want to ensure that your spirit of giving is protected and not taken advantage of.
Unfortunately, due to technological constraints, replies to this newsletter won’t reach my email account. To share your input or ideas, or if I can ever be of assistance, please feel free to reach out at rep.brion.curran@house.mn.gov or 651-296-4342, and I will be happy to help. If you were forwarded this email and you’d like to subscribe, click here. If you have a friend or neighbor who would be interested in receiving these, please forward this and encourage them to subscribe!
Brion Curran State Representative
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