Thousands of Hawaii nonprofits may soon lose the ability to receive donations through GoFundMe unless they complete a new consent requirement mandated under state law.
Beginning July 1, Hawaii’s Act 205 will require online charitable fundraising platforms, including GoFundMe, to obtain written permission from nonprofits before allowing users to donate to them or create fundraisers on their behalf. The consent must come from an authorized representative of the organization, such as an officer, director, trustee or another individual with legal authority to act for the nonprofit.
GoFundMe officials say organizations that do not provide consent by the deadline will be removed from the platform until the requirement is fulfilled. That means supporters will no longer be able to search for the nonprofit, donate to it through GoFundMe or launch fundraisers benefiting the organization.
Amanda Brown Lierman, GoFundMe’s vice president of impact, policy and engagement, said the company has been preparing for the law’s implementation for more than a year and has worked with Hawaii officials to help nonprofits understand the changes.
GoFundMe estimates that about 8,500 Hawaii- based nonprofit organizations could be affected.
The law is intended to ensure nonprofits explicitly authorize their presence on online fundraising platforms and to strengthen transparency in charitable giving. Lierman said those goals align with GoFundMe’s mission but acknowledged the new requirement could create unintended disruptions if organizations fail to act before the deadline.
“I think the intention of the bill really here is to protect organizations in terms of how they show up on online fundraising platforms, and to protect the donor experience,” she said. “It is true, and sort of an unfortunate consequence … that if the organization has not provided this additional consent, they will be removed from online charitable fundraising platforms like GoFundMe.”
The requirement applies to Hawaii-based nonprofits with claimed GoFundMe nonprofit pages, organizations listed in the platform’s nonprofit directory and GoFundMe Pro customers that fundraise through the site. According to GoFundMe, nonprofits headquartered outside Hawaii that want to continue accepting donations from Hawaii-based donors also must complete the consent process.
The company has begun reaching out directly to nonprofits with consent forms and published guidance explaining the new requirements. While organizations that miss the deadline can still submit the form later and be restored to the platform, GoFundMe is encouraging nonprofits to complete the process before July 1 to avoid interruptions.
“We will continue our efforts to solicit this additional consent that’s required by the state now post July 1 as well,” Lierman said. “As nonprofits submit that, we will obviously move them back to an active state on our platform … but we would like to limit that for as many nonprofits as we possibly can.”
The law also establishes a “good standing” requirement, prohibiting fundraising platforms from enabling donations to nonprofits that are barred by the state Attorney General from soliciting or operating in the state.
Lierman noted that many charitable solicitation laws predate the rise of internet fundraising and that states have increasingly updated regulations to reflect how donors give online. She said California has adopted a similar consent framework, though Hawaii’s implementation is among the first of its kind.
GoFundMe hopes increased awareness will prevent organizations from being caught off guard when the law takes effect.
The issue is particularly important in Hawaii, where online fundraising has played a major role in disaster recovery efforts. Lierman said GoFundMe raised more than $2 million for flood relief causes by the Kona-low storms this year and has facilitated more than $65 million in donations supporting individuals, businesses and communities affected by the Aug. 8, 2023 Maui wildfires.
“The last thing that I think any of us want in all of this is for there to be any significant consequence to the work that these nonprofits are doing for the community,” she said.
Although the new law introduces an additional administrative step, Lierman emphasized that complying with it is relatively simple.
“They’re not alone in that journey,” she said. “There is an action to take, it’s a very simple action, they can just go fill out this consent form and remain eligible.”
Comments are closed.