Ethical Online Fundraising Practices Critical for Maintaining Donor Trust

In the same way that online shopping, food delivery and other on-demand services have evolved in recent years to meet consumers quite literally “where they are,” so, too, has the charitable sector helped find easier, more accessible ways for individuals to support causes that are important to them. This includes the rise of online giving, whether directly to registered nonprofit organizations or in peer-to-peer formats.

While this shift has wonderfully opened doors and removed barriers, it is not free of ethical challenges. This summer, the National Council of Nonprofits, along with their 52 state and regional member organizations including the Oklahoma Center for Nonprofits, is taking a stand to protect the integrity of charitable giving. Together, we published a new set of national principles for ethical online fundraising platforms.

Some third-party platforms currently collect donations on behalf of nonprofits without their explicit knowledge or consent. This practice—often driven by automated data scraping that may or may not capture accurate, up-to-date or authorized information—results in critical issues that directly threaten public trust.

When platforms auto-list charities, they frequently display outdated branding or incorrect mission statements, potentially misrepresenting an organization’s work or causing donor confusion. Some platforms divert critical funding away from charitable organizations by burying processing fees or setting excessive platform “tips.”

The Center for Nonprofits and our sister state associations are built on the promotion of transparency in all we do, which is central to building public trust among donors. This trust is built over decades of accountability, yet it can be compromised in a single bad online transaction. To protect both generous donors and hard-working charities, the National Council’s guidelines outline four essential pillars for ethical platform behavior:

Nonprofit Consent: Nonprofits must have the power and agency to decide for themselves how and when to engage with online fundraising platforms before they solicit or collect donations.

Transparency: Donors must have the power and information they need to decide whether to make a donation through an online fundraising platform.

Partnership: Online fundraising platforms must recognize nonprofits as valued, equal partners.
Accountability: Online fundraising platforms must be accountable to nonprofits, donors, the public and the appropriate regulators.

In the Sooner State, we pride ourselves on the Oklahoma Standard, which promotes both service and doing the right thing by our neighbors. As you continue to support your favorite causes online, I encourage you to take an extra moment to ensure your gifts are processed directly through the charity’s own secure website or via a platform that explicitly honors these ethical principles.

Together, we can champion the standard our communities deserve and ensure that every hard-earned dollar meant to change an Oklahoma life actually reaches its destination.

For more information about the Principles for Ethical Online Fundraising Platforms, please visit www.councilofnonprofits.org.