UPDATE: California Attorney General Rob Bonta has just ordered Flipcause, an online fundraising platform based in Oakland, to immediately cease operations following allegations of mishandling over $500,000 in donations. This urgent directive was issued on Friday, highlighting serious concerns about the platform’s failure to distribute critical funds to nonprofits in need.
Bonta’s office alleges that Flipcause has repeatedly delayed transferring the donated money, leaving charities struggling financially during critical times. The Attorney General emphasized the gravity of the situation, stating, “Donors placed their trust in Flipcause to ensure their contributions reached those in need. Instead, charities are experiencing significant financial stress due to the platform holding these funds back. This is simply unacceptable.”
In addition to halting operations, the state is seeking penalties of up to $70,000 against Flipcause for its alleged violations. The ramifications of this order are significant, as many charitable organizations rely on timely access to donations to support their vital services.
This situation is developing rapidly, and the impact on charities could be profound. As authorities investigate further, it remains unclear how Flipcause will respond to this order or what measures will be taken to ensure the affected charities receive the funds they desperately need.
The Attorney General’s office urges donors to remain vigilant and consider alternative, more reliable platforms for their charitable contributions moving forward. The community’s trust in online fundraising platforms is at stake, and immediate action is necessary to safeguard the interests of both donors and recipients.
Stay tuned for updates as this story unfolds.
