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.
The Attorney General’s order lists a roster of organizations and the amounts they claim are being held, for example, Intersection for the Arts at approximately $144,746 and CityLax at roughly $126,810, illustrating how stalled payouts can easily reach six figures. Those figures appear in the state filing, and KMPH reports that groups from New York to Washington state say their donations are still being withheld.
The Better Business Bureau has also warned nonprofits about Flipcause, stating that it has received more than 100 complaints over the past three years, with a surge in reports this year. The Better Business Bureau reports that the pattern involves slow or missing transfers and a lack of company responses, leaving small organizations struggling to stay afloat financially.
Flipcause's main site remains online, and the company continues to offer product pages and support resources. The platform previously told users it was “solvent and profitable” and working to clear a backlog, according to industry coverage. Flipcause has not provided a public, detailed response to the Attorney General's order, according to local reporting. Oakland Voices reports that some organizations visited Flipcause's listed offices and found no staff on site.
What The Order Requires
According to the California Attorney General's Office, the cease-and-desist order requires Flipcause to cease soliciting donations in California, compile a list of every charity that has used its service since 2015, and provide a full accounting of its charitable assets. The order also instructs the company to place all cash and cash-equivalent assets into a blocked bank account while regulators assess compliance and possible penalties. The filing notes that the order includes mechanisms to enforce compliance if Flipcause does not respond.
What Nonprofits Can Do Now
Organizations still tied to Flipcause are being advised to immediately download donor and payout records, document outstanding balances, and file complaints with state regulators and the Better Business Bureau to preserve evidence for future reference. Givebutter and other platforms are offering step-by-step guidance and, in Givebutter’s case, a short-term relief fund to help bridge gaps while funds are secured.
The Attorney General’s office will retain oversight of compliance while affected organizations pursue remedies, and advocates say the order could restore critical dollars if Flipcause follows the directives.
