Elsewhere online
March 01, 2016

Increasingly Popular Crowdfunding Sites Lack Oversight

For-profit crowdfunding sites helped ordinary people raise billions of dollars last year, but a lack of accountability leaves the public vulnerable to nefarious actors, The Wall Street Journal reports. While officials at sites such as GoFundMe and YouCaring say they use screening processes to detect fraudulent fundraising campaigns, some people continue to deceive donors about where and how contributions will be used, the Journal writes.

In one case cited by the newspaper, a women who raised money for the funeral expenses of a neighborhood child killed in a drunken driving accident kept almost half of the donations for herself. In another case, a young widow discovered a fundraising campaign had been set up in her husband's name without her knowledge. GoFundMe declined to take down the campaign.