California Attorney General Rob Bonta has ordered Oakland-based fundraising platform Flipcause to immediately halt its operations after state regulators alleged that the company withheld donated money intended for dozens of charities. The cease-and-desist focuses on delayed transfers that nonprofit leaders say have disrupted payrolls and year-end programs. The order requires an accounting that spans years and aims to maintain the company’s cash under legal control while officials determine where the money went.
According to the California Attorney General’s Office, the Nov. 14 order alleges Flipcause delayed transferring roughly $500,000 in donations and seeks civil penalties of up to $70,000. The filing states that the company must cease its operations, provide an accounting of all charitable assets in its possession dating back to 2015, compile a list of every charity that has used the platform since 2015, and transfer all cash or cash-equivalent assets into a blocked bank account.
The timing is brutal for nonprofits: year-end giving is ramping up, and organizations say access to pledged dollars is critical. In response, Givebutter announced a $1 million “Givebutter Cares Fund” this week to send $500 grants to eligible organizations that used Flipcause, aiming to soften the short-term blow…