"Flipcause, a for-profit tech company based in Oakland, CA, marketed itself as 'the best fundraising platform for small nonprofits,' promising clients that 'your money and your data always belong to you.' Since launching in 2012, it has attracted thousands of nonprofits that use it to collect donations, manage donor data, organize volunteers, host websites, and sell event registrations, sponsorships, and merchandise."
"Like other companies in the donation processing space, Flipcause acted as a financial intermediary between donors and nonprofits, taking a cut of each transaction. Nonprofits could pay Flipcause a 1.5 percent processing fee or offer supporters the option of covering the cost. For many nonprofits, foundations, and community groups-especially those without dedicated tech staff or large budgets-an all-in-one low-cost platform was a powerful draw."
"Warning signs about Flipcause surfaced in 2024 and intensified through 2025, as complaints about slower, smaller disbursements poured into the Better Business Bureau, Reddit, Google reviews, and other sites. Some said payouts had dried up entirely, leaving nonprofits cut off from their own donations."
Flipcause, a for-profit tech company founded in 2012, marketed itself as a trusted fundraising platform for small nonprofits, promising secure handling of donations and data. The platform processed donations, managed donor information, organized volunteers, and hosted websites for thousands of nonprofits. Operating as a financial intermediary, Flipcause charged processing fees on transactions. Beginning in 2024, complaints escalated about delayed and reduced disbursements, with some nonprofits reporting complete payment cutoffs. Investigation revealed that cofounder Emerson Ravyn and associated entities transferred millions to themselves while withholding nonprofit donations. The company subsequently entered bankruptcy proceedings with minimal asset recovery prospects for affected nonprofits.
#nonprofit-fraud #fundraising-platform-collapse #financial-misconduct #donation-misappropriation #bankruptcy
Read at Nonprofit Quarterly | Civic News. Empowering Nonprofits. Advancing Justice.
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