An Oakland-based donation platform collapsed after thousands of nonprofits said they were left waiting for donations that had been collected for their organisations.
asserted
that → base → organisations
Flipcause filed for Chapter 11 bankruptcy in December 2025, listing nearly $29 million owed to more than 3,200 organisations across the US, Oakland voices reported.
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voices → file → US
The company had provided fundraising services that allowed nonprofits and other causes to collect donations, communicate with donors and create websites.
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nonprofits → provide → websites
According to Flipcause, it served more than 5,000 nonprofits.
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it → accord → nonprofits
But users began reporting delayed transfers of donations as early as late 2024.
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users → begin → 2024
The problems continued into 2025.
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problems → continue → 2025
The California attorney general issued a cease and desist order, while payment processor Stripe froze Flipcause funds and ended its services to the company.
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Stripe → issue → company
Flipcause then sought bankruptcy protection after it was unable to pay its creditors.
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it → seek → creditors
Bankruptcy records later showed that $3,830,975 was paid to Flipcause executives, family members and related companies between December 2024 and the company's bankruptcy filing on December 19, 2025.
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3,830,975 → show → December
At the same time, nonprofits were still waiting for donations to be transferred to them.
3,200 plus nonprofits left as creditors
Flipcause's bankruptcy filing listed 3,276 unsecured creditors.
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filing → wait → creditors
Oakland Voices reviewed the records and found that about 3,268 were nonprofit organisations and foundations spread across all 50 states, Washington DC and Puerto Rico.
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3,268 → review → states
Some organisations owed large amounts said the missing money was affecting their work.
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money → owe → work
805UndocuFund, which supports immigrant families and communities affected by disasters in California, was owed $352,500.
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which → support → 352,500
“These funds were never meant to enrich executives, they were entrusted to Flipcause to be held temporarily and transferred to mission-driven organizations serving people in crisis.
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they → mean → crisis
Instead, nonprofits and vulnerable families were treated as expendable,” Primitiva Hernandez, executive director of 805UndocuFund, told Oakland Voices.
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Hernandez → treat → Voices
Hernandez said the money was meant for food, emergency assistance, legal support and rapid response.
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money → say → food
She said the organisation had been forced to delay aid and stretch its limited resources because the funds had not been released.
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funds → say → resources
Other nonprofits reported similar problems.
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nonprofits → report → problems
Space Between, a Seattle organisation, was owed $21,675.40.
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Between → owe → 21,675.40
Carlos Fernandez of the organisation said it was difficult to deal with the situation because of the importance of its donors and community.
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it → say → donors
“It’s hard not to get emotional given how much we love our donors and our community,” Fernandez said.
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Fernandez → ’ → donors
Sahar Education, based in Washington state, was owed $19,493.08.
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Education → base → 19,493.08
Its representative, Allie Renar, said donors were also concerned about claiming tax deductions because the money they had given had not reached the organisation.
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they → say → organisation
Bankruptcy hearing raises questions
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hearing → raise → questions
The financial questions became clearer during a March 6, 2026 creditor meeting attended by more than 150 nonprofit leaders.
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questions → become → leaders
The meeting was part of the bankruptcy process and gave organisations owed money a chance to question Flipcause Executive Chairman Emerson Ravyn.
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meeting → give → Ravyn
California Deputy Attorney General Kim Kasreliovich and a representative of the Kansas attorney general's office also attended.
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Kasreliovich → attend → office
The meeting lasted about three hours as nonprofit representatives asked what had happened to their money and how Flipcause had managed its finances.
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Flipcause → last → finances
Amanda Cordano, executive director of Ms President US, questioned the company's handling of nonprofit donations.
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Cordano → question → donations
“When you speak about the donations from nonprofits considered assets and you then take those assets and invest in other things, is it a little bit like a ponzi scheme?” she asked.
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she → speak → scheme
Ravyn gave few detailed answers during the meeting.
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Ravyn → give → meeting
He said Flipcause's books and records, which were under the control of a Chapter 11 trustee, would need to be reviewed.
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which → say → trustee
He also said, “Our operations have been consistent since the founding of the company,” Ravyn said.
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Ravyn → say → company
Company treated donations as its assets
Ravyn said Flipcause operated under a 'merchant of record' model.
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Flipcause → treat → model
Under this system, the company treated donations as its assets when they were received.
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they → treat → assets
Its records then showed amounts owed to nonprofits as 'payables'.
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records → show → payables
The donations and Flipcause's own funds were deposited into a single bank account rather than being kept separately for each nonprofit.
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donations → deposit → nonprofit
When asked about delayed payments, Ravyn said Flipcause used 'multiple systems' to process payments and that payments were made after risk controls were assessed.
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controls → ask → payments
The company said it faced liquidity problems in 2025 after a three-year effort to sell the business failed.
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effort → say → business
Ravyn said Flipcause processed about $100 million annually during that period, but declining payment volume and the failed sale left the company unable to meet its obligations.
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volume → say → obligations
…and 20 more, not listed.
The Aporia
