There have been several lawsuits filed against Vertical Raise, LLC, an online fundraising company, alleging a variety of unfair and deceptive practices. These lawsuits have been consolidated into a multidistrict litigation (MDL) in the U.S. District Court for the District of Idaho.
Key Allegations in the Lawsuits
- Vertical Raise engaged in deceptive marketing practices by falsely claiming that its fundraising platform was more effective than it actually was.
- Vertical Raise charged excessive fees to charities and nonprofits that used its platform.
- Vertical Raise failed to adequately disclose the terms and conditions of its services to clients.
- Vertical Raise violated the Fair Credit Reporting Act (FCRA) by failing to provide clients with accurate and up-to-date information about their fundraising campaigns.
Outcome of the Lawsuits
In 2021, Vertical Raise settled with the MDL plaintiffs for an undisclosed amount of money. The terms of the settlement are confidential.
Implications of the Lawsuits
The Vertical Raise lawsuits are a reminder of the importance of transparency and accountability in the charitable fundraising industry. These lawsuits also underscore the need for charities and nonprofits to be careful when selecting fundraising partners.
Recommendations for Charities and Nonprofits
- Do your research before selecting a fundraising partner.
- Compare the fees and services of different fundraising platforms.
- Read the terms and conditions of any fundraising agreement carefully.
- Monitor your fundraising campaigns closely to ensure that you are receiving the results you are paying for.
Conclusion
The Vertical Raise lawsuits are an important step in protecting charities and nonprofits from unfair and deceptive practices. Charities and nonprofits should be aware of their rights and should take steps to protect themselves.
