Funds Being Held by Flipcause? You Are Not Alone: Attorney General Bonta Announces Guidance for Affected Nonprofit Organizations

OAKLAND – In the face of delayed payments held by Flipcause to nonprofit organizations, California Attorney General Rob Bonta announced guidance for affected organizations outlining next steps and available support. In November, the Attorney General sent a cease and desist orderto Flipcause demanding an immediate stop to all its operations, including all solicitations for charitable purposes. Oakland-based Flipcause is a fundraising and community engagement platform designed to help small nonprofits manage donations from a single dashboard. However, Flipcause has delayed transferring donated funds to nonprofits — and has now filed to reorganize in bankruptcy.

“With comprehensive laws regulating charitable fundraising platforms, California is committed to protecting our nonprofit organizations and holding accountable those that try to turn a buck without delivering on their promises to our charities,” said Attorney General Bonta. “Last month, we sent a cease-and-desist order to Flipcause demanding an immediate stop to all its operations. We have been hearing from numerous affected nonprofit organizations and encourage those who may have been affected to file a complaint at oag.ca.gov/charities/complaints and check out the resources on our website. At the California Department of Justice, we will continue to uphold our laws that protect donors, ensure transparency, and uphold the integrity of charitable giving.”

Impacted nonprofit organizations may:

• Download or take screenshots of their Flipcause balances, donors, transactions, payout records, and any related correspondence; and file a consumer complaint with the California Department of Justice  or their own state.
• Communicate with donors about who is and is not authorized to solicit for them, especially if they are switching to a new platform.
• Research potential fundraisers carefully, using our Registry Search Tool to search by program type (i.e., fundraising platform or fundraising professional) and by reviewing our commercial fundraiser reports. 

The Attorney General’s Registry of Charities and Fundraisers (Registry) administer the registration and reporting requirements set forth under Government Code section 12580 et seq. The Registry does this through its various programs, such as: Initial Registration, Registration Renewals, Delinquency, Dissolution, Professional Fundraising, Raffles, and Complaints. The Registry also maintains the Registry Search Tool for the public to research registered charitable organizations, fundraising professionals, and charitable fundraising platforms.