Overview

This Code outlines best practices for online charitable fundraising appeals in the United States. It aims to ensure transparency, accountability, and security in online charitable fundraising activities.

A. Data Security and Accessibility

• Data Protection: Fundraising platforms must implement robust systems and procedures to safeguard user information. This includes ensuring data is secure and remains accessible, even if the platform ceases operations.

B. Transparency in Fundraising

• Public Disclosure: Platforms should provide clear and accessible information regarding:
  • Funds Collected: Regular updates on the amount of funds raised during and after the appeal.
  • Donation Process: Detailed explanations of how donations are processed.
  • Terms and Conditions: Clear terms outlining the responsibilities of all parties involved.
  • Fees and Charges: Disclosure of any fees or charges associated with the fundraising.
• Record Keeping: Maintain accurate records of all donations received and disbursed.

C. Compliance Declaration

Individuals conducting fundraising appeals must complete a declaration confirming compliance with relevant U.S. laws and regulations governing charitable fundraising.

D. Fraud Prevention and Management

• Verification Processes: Implement procedures to verify the identity of fundraisers and beneficiaries to prevent fraudulent activities.
• Fraud Detection: Develop and apply policies to detect and address potential fraud.
• Regular Audits: Conduct regular reviews and updates of policies to address emerging threats.

E. Anti-Money Laundering Measures

• Risk Assessment: Evaluate risks related to money laundering and terrorist financing.
• Preventative Measures: Establish systems to mitigate identified risks, in line with U.S. regulations.

F. Cooperation with Regulatory Authorities

• Regulatory Engagement: Platforms should cooperate with relevant U.S. authorities to ensure compliance with applicable laws and regulations.
• Audits and Reviews: Facilitate periodic audits and reviews to assess adherence to this Code.

G. Platforms Adhering to the Code

Several major crowdfunding platforms in the United States have committed to following this Code of Practice. These platforms are dedicated to upholding the highest standards in online charitable fundraising.