Vertical Raise, an online fundraising platform, faced a consolidated lawsuit (MDL) alleging deceptive marketing, excessive fees, hidden terms, and FCRA violations. While settled in 2021 for an undisclosed sum, the case raises crucial questions about transparency and accountability in the charitable fundraising industry.
| Complete Date | Case | Citation | Court | Short Summary |
|---|---|---|---|---|
| 2019 | Vertical Raise MDL | N/A | U.S. District Court, D. Idaho | Consolidated lawsuits alleging: – Misleading Marketing: Exaggerated claims of platform effectiveness compared to actual results. – Excessive Fees: Charities and nonprofits burdened by high costs for using the platform. – Hidden Terms: Lack of transparency regarding service agreements and potential fees. – FCRA Violations: Inaccurate or outdated information provided on fundraising campaigns. |
Key Allegations:
- Marketing Mirage: Accusations claim Vertical Raise inflated platform effectiveness through marketing, potentially overpromising fundraising success.
- Fee Fiasco: Charities and nonprofits allegedly faced significant financial burdens due to the platform’s fee structure.
- Terms in the Shadows: Concerns arose regarding unclear service agreements and hidden fees not readily disclosed to clients.
- Credit Reporting Conundrum: Violations of the FCRA were alleged due to inaccurate or outdated information provided on fundraising campaigns.
Resolution and Implications:
- The MDL settled in 2021 with undisclosed terms, leaving specific consequences for Vertical Raise unknown.
- The case serves as a reminder of the importance of:
- Transparency: Clear communication of fees, terms, and platform effectiveness.
- Accountability: Holding fundraising platforms responsible for fair practices.
Recommendations for Charities and Nonprofits:
- Diligent Research: Thoroughly research and compare different fundraising platforms before choosing one.
- Fee Focus: Carefully assess fee structures and ensure understanding of all potential costs.
- Terms Transparency: Scrutinize service agreements and ensure clear understanding of terms and conditions.
- Campaign Monitoring: Closely monitor fundraising campaigns to track progress and identify any discrepancies.
Conclusion:
While the Vertical Raise MDL may be settled, its legacy lives on. It serves as a crucial lesson in advocating for transparency and accountability within the charitable fundraising industry. Charities and nonprofits, empowered with knowledge and vigilance, can navigate this landscape effectively and fulfill their missions with integrity.
Disclaimer: This information is for general knowledge only and does not constitute legal advice. For specific legal matters, please consult with an attorney.
