Thank you, Mr. Chair.
Good evening, Chair and members of the committee. It is our pleasure to join with honourable senators and members of Parliament today to discuss these important issues.
My name is Kim Wilford, and I'm the general counsel of GoFundMe.
At the outset, I would like to thank the committee for its important work to review the exercise of powers pursuant to the public order emergency declared under the Emergencies Act.
As a global brand that complies with laws and regulations in all jurisdictions where we operate, GoFundMe takes no position on the propriety of the Canadian government’s use of the Emergencies Act; however, we are happy to discuss the events of this past January and February and the actions that we took as a company.
GoFundMe is the world’s most recognized and most trusted fundraising platform. Our mission is to help people help each other, with a goal of being the most helpful place in the world. We are humbled that GoFundMe has become a noun synonymous with receiving help and assisting communities. That impact is far-reaching, as we have delivered over $17 billion in assistance to communities in 19 countries since the company began over a decade ago.
In Canada, we are now delivering around $200 million in community assistance each year, including funds raised for significant events such as the Humboldt Broncos fundraiser in 2018, the floods in British Columbia this time last year and, most recently, hurricane Fiona.
GoFundMe aspires to be the benchmark for responsible operations in the social fundraising space, and many of our employees are dedicated to trust, safety, platform integrity and compliance. Our decisions and policies are guided by our terms of service, which are posted publicly and outline what is permissible on our platform. Fundraising campaigns relating to misinformation, hate, violence and intolerance of any kind are not permitted under our terms.
Before we provide a timeline of events for the “freedom convoy” fundraiser, I would like to thank the City of Ottawa authorities for their partnership and collaboration. As the only level of government to interact directly with GoFundMe during this situation, the partnership was essential to understanding what was happening on the ground so that we could make the best possible decisions relative to our policies.
The “freedom convoy” fundraiser was created on January 14. We began to actively monitor it the next day, based on donation velocity. Our initial analysis concluded that it was within our terms of service. On January 27, we initiated, through our payment processing partner, a single distribution of $1 million Canadian to the financial institution of the “freedom convoy” fundraiser organizer.
Following this disbursement, public statements from the fundraiser organizer began to shift in tone and, on February 2, we suspended the fundraiser. This effectively meant that all future donations and withdrawals were paused.
From February 2 through 4, we heard from local authorities, namely the City of Ottawa and Ottawa police, that what had begun as a peaceful movement had shifted into something else, with reports of violence and threats. We commenced a review of where donations were coming from, and our records show that 88% of the donated funds originated in Canada and that 86% of donors were from Canada.
On February 4, following dialogue with the fundraiser organizer and her team as well as continued updates of concerning incidents from local authorities, it became clear that the fundraiser no longer complied with our terms of service. We removed the fundraiser from our platform and provided donors with the option to request a refund or have their donations delivered to credible and established charities chosen by the fundraiser organizer and verified by GoFundMe.
As of February 5, refunds were initiated via our payment processing partner, including all transaction processing fees and tips, and funds were returned to donors.
GoFundMe does not directly interact with or hold any funds, nor are we able to redirect those funds to ourselves or anyone else. All donations are processed, held and paid out by our payment processing partners. It's important to note that there are multiple layers in the regulatory framework surrounding social fundraising on GoFundMe. Our trust, safety, platform integrity and compliance teams work to ensure that we provide the most safe and secure environment for our users. That's the first layer. The second layer comes from the similar functions implemented by our payment processors. Third, our processors are bound by and rely on banks, card networks and their associated regulatory requirements. Lastly, crowdfunding platforms in Canada must now register with FINTRAC, which we did as soon as the requirement was enacted.
In closing, GoFundMe believes that responsible action is core to social fundraising. That's why we proactively invest in the tools, teams and processes to earn the trust of our users and the regulators.
We hope that this provides useful context to your ongoing review, and I'm happy to answer any questions that the committee has.
Thank you.