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by jeff18 3397 days ago
Humble Bundle co-founder here. This does not apply to us. The lawsuit refers to a feature PayPal Giving Fund launched a few months ago on their own website, to let people pay charities that are not yet registered.

On our side, for charities that are paid via PayPal Giving Fund, we require them to be fully onboarded. For our "choose your own charity" feature, which lets you customize which charity you are supporting, we only allow our customers to choose charities that are fully registered with PPGF. You can verify this by noting that we only support a fraction of the charities listed on PPGF.

Why use PPGF (or Tides.org, our backup) in the first place? There are regulations that require you and the charity to do a fair amount of paperwork and register with various states. When you are tiny, you can probably fly under the radar, but when you are approaching $100M raised for charity, it is a good idea to be fully compliant.

PPGF is an easy way to maintain sanity, because we can focus on fully complying with every state with the PayPal Giving Fund 501(c)3. PPGF then handles maintaining compliance with the states (+ UK) on their side.

However, for this to actually legally work, the PPGF needs to retain control over the funds, hence the scary disclaimer on the site. If they didn't actually pay a charity we work with, which has never happened, we would obviously let the customer know and make it right. We will be updating the disclaimer next week to be less opaque.

1 comments

Thanks, that makes a lot of sense! :)