Donations made using PayPal platform may never reach charities, lawsuit says

Giving Fund platform says it allows donations to 'over a million charities' - but few actually get funds because they aren't registered with company, suit says

Charitable donations made through PayPal's Giving Fund platform may never reach their intended recipients, a federal class-action lawsuit filed Tuesday in Chicago has alleged.

PayPal's charitable platform, which the company says raised more than $7bn in 2016, claims to allow individuals to give directly to "over a million charities". But only a fraction of those charities actually receive the donations, the lawsuit alleges, because they aren't registered with PayPal. Donations made to non-registered charities are held by PayPal for six months before being transferred to other not-for-profit organizations, according to the suit.