SEPA Mujer, a nonprofit organization based in Patchogue, New York, claims it is owed approximately $27,000 by Flipcause, a company that handles online donations for nonprofit entities. This claim comes as Flipcause filed for bankruptcy last month, leaving numerous organizations uncertain about the recovery of funds that have already been collected on their behalf.
The bankruptcy filing has drawn attention from several Long Island nonprofits, with SEPA Mujer being the third organization to come forward regarding similar financial losses. Martha Maffei, the chief executive officer of SEPA Mujer, expressed her frustration, stating, “We shouldn’t have to fight for getting our money back. This funding belongs to the community. It’s a matter of can we continue with the services or not?”
Flipcause’s bankruptcy has raised questions for over 3,000 nonprofits across the United States, with reports indicating that the company owes nearly $29 million. A closer examination of bankruptcy records reveals troubling financial practices by Flipcause executives prior to the filing. Notably, $450,000 was paid to Emerson Ravyn, the Executive Chairperson, for what was described as an external investment initiative. Furthermore, records indicate that an additional $2.8 million was disbursed to companies under Ravyn’s control, while $270,000 was allocated to his brother, Rolando Viliao, and a company he owns.
SEPA Mujer is not alone in its struggle. The Michelle O’Neill Foundation, another Long Island nonprofit based in Long Beach, reported that it is owed approximately $130,000 from Flipcause, further highlighting the widespread impact of the company’s financial woes.
Maffei has expressed her concerns over the potential consequences of losing these funds. “The loss threatens the services SEPA Mujer provides to vulnerable women and girls in the community,” she told News 12. The nonprofit’s attempts to recover the missing funds have been met with silence, as Flipcause reportedly stopped responding to Maffei’s emails during the recovery process.
As the situation unfolds, the ramifications of Flipcause’s bankruptcy extend beyond financial losses. Nonprofits like SEPA Mujer play a crucial role in their communities, and without adequate funding, their ability to provide essential services is endangered. The future of these organizations now hinges on the outcome of the bankruptcy proceedings and whether they will be able to recover any of the funds owed to them.
The challenges faced by SEPA Mujer and other nonprofits underscore the vulnerabilities within the nonprofit sector, particularly regarding financial management and accountability in the wake of emerging technologies for donation processing. As these organizations continue to advocate for their rightful funds, they also highlight the importance of safeguarding the financial interests of those they serve.
