Oakland Company Accused of Stiffing Hundreds of Nonprofits Across the Country

"Nonprofits nationwide are saying Oakland-based donation processing platform, Flipcause, mishandled their funds, costing them thousands of dollars. The company currently has 81 unresolved Better Business Bureau complaints and an F rating. In an exclusive report, KGO's Dan Noyes spoke with various nonprofits across the country, which say that although Flipcause promises delivery of funds to clients' accounts within 7 to 10 days, the company has significantly delayed its distributions, or failed to send them altogether over the past year and a half."

"Clients' ongoing attempts to recover their funds are usually met with no response. According to a recent Reddit thread, tens of thousands of nonprofits have been impacted by Flipcause's mishandling of their funds. Users whose nonprofits have been with Flipcause for a decade boasted about the company's top-notch platform until it began delaying distributions and removed its dedicated customer service phone line in favor of a chatbot."

"Julia Wyson of the Shakespeare Youth Festival in Los Angeles told KGO, "I have to tell my staff, I'm sorry, guys, you're gonna have to wait for your paycheck, because we're waiting for Flipcause to pay us our money." Some have even considered closing their nonprofits due to the delayed or missing funds. Tammy Clark of Homeless Hands in Zanesville, Ohio told KGO that although she ended up receiving all of her funds, she still lost dozens of donors."

Flipcause, an Oakland-based donation processing platform, has delayed or failed to distribute funds owed to hundreds of nonprofits, often leaving organizations without thousands of dollars. The company holds 81 unresolved Better Business Bureau complaints and an F rating. Flipcause promises transfers within 7 to 10 days but has sometimes withheld distributions for up to a year and a half. Clients report unanswered attempts to recover funds, donor losses, payroll delays, and staffing strain. Some organizations face closure. Longtime users report the platform's service declined after removing a customer service phone line in favor of a chatbot.

Read at sfist.com