UPDATE: California Attorney General Rob Bonta has ordered Oakland-based fundraising platform Flipcause to cease operations immediately after allegations surfaced regarding its handling of donations. The state claims Flipcause has failed to distribute $500,000 in funds collected for nonprofits, prompting urgent action from officials.
Bonta’s office alleges that Flipcause has delayed transferring donated funds, leading to serious financial stress for charities relying on these contributions. Furthermore, the platform is reportedly not properly registered as a fundraising entity in California. The Attorney General’s office is seeking up to $70,000 in penalties against the company.
“Donors placed their trust in Flipcause to ensure their contributions reached those in need,” stated Bonta. “Instead, charities are experiencing significant financial stress due to the platform holding these funds back. This is simply unacceptable.”
The decision to shut down Flipcause comes amid rising concerns over transparency and accountability in online fundraising. Nonprofits have increasingly relied on digital platforms for raising funds, making swift action essential to protect both charitable organizations and the donors who support them.
As of now, Flipcause has not responded to requests for comment regarding the order. The urgency of this situation highlights the critical need for reliable fundraising systems that ensure funds are delivered to those in need without delay.
This developing story raises important questions about the oversight of online fundraising platforms and the implications for charities and donors alike. Authorities are expected to provide more details in the coming days, and stakeholders in the nonprofit sector will be watching closely to see how this situation unfolds.
Stay tuned for further updates on this breaking news as more information becomes available.
