UPDATE: California Attorney General Rob Bonta has ordered the Oakland-based online fundraising platform Flipcause to immediately cease operations following allegations of mishandling over $500,000 in donations. The order, issued on Friday, October 27, 2023, claims that Flipcause has delayed transferring crucial funds to nonprofits and has not been properly registered as a fundraising entity.
This alarming development is causing significant distress among charities that rely on these donations for their operations. Bonta emphasized, “Donors placed their trust in Flipcause to ensure their contributions reached those in need. Instead, charities are experiencing significant financial stress due to the platform holding these funds back. This is simply unacceptable.”
Authorities are not only halting Flipcause’s operations but are also seeking up to $70,000 in penalties for the alleged violations. Sources indicate that the platform’s failure to distribute funds has left many nonprofits in dire financial situations, impacting their ability to serve communities effectively.
Flipcause has not responded to requests for comment regarding the state’s order as of publication time. The situation highlights the urgent need for transparency and accountability in online fundraising, especially as more donors turn to digital platforms to support charitable causes.
As this story develops, the implications for both donors and nonprofits remain significant. Stakeholders are urged to stay informed as the Attorney General’s office continues to investigate the matter. This case serves as a critical reminder of the importance of vetting fundraising platforms before making contributions.
Stay tuned for further updates on this unfolding story as authorities continue to seek justice for the affected charities and their beneficiaries.
