"The idea for Flipcause was simple. Starting in 2012, the Oakland startup provided technical tools for thousands of nonprofit organizations, handling the work of online storefronts, donation systems and ticketing pages. Millions of donor dollars flowed through Flipcause's tech to nonprofits focused on just about every societal issue. Then, this year, much of that money suddenly stalled under Flipcause's control, as evidenced by testimonials from client companies on social media, with the Better Business Bureau, and to SFGATE."
"The bankruptcy filing lists some astonishing figures. Flipcause has about $30.5 million in debts, more than $29 million of which is money owed to more than 3,200 nonprofits, foundations and other organizations. Flipcause owes $1.2 million to the Sweet Relief Musicians Fund, a nonprofit for struggling musicians based in Brea, California. Loveland Foundation, which provides therapy and programming for Black women, is owed $701,000."
Flipcause began in 2012 in Oakland to provide online storefronts, donation systems and ticketing tools to thousands of nonprofits. This year much of the donor money processed by Flipcause stalled under the company's control, leaving charities unable to access funds for education, food distribution, health care and legal defense. A class-action lawsuit accused Flipcause of fraud over a $75,000 claim, and California Attorney General Rob Bonta filed a cease-and-desist alleging $615,000 of withheld donations. Flipcause filed for bankruptcy on Dec. 19, listing about $30.5 million in debts, with more than $29 million owed to over 3,200 nonprofit organizations.
Read at SFGATE
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