Nonprofit organizations in California affected by delayed payments from Flipcause have received new guidance from Attorney General Rob Bonta. The Attorney General’s office issued the advice after sending a cease and desist order to Flipcause in November, demanding an immediate halt to all its operations, including fundraising activities. Flipcause, based in Oakland, is a platform that assists small nonprofits with managing donations but has recently delayed transferring donated funds and has now filed for bankruptcy reorganization.
“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.”
The guidance recommends that impacted nonprofits document their account balances, donor information, transactions, payout records, and any correspondence related to Flipcause. Organizations are also advised to file consumer complaints with the California Department of Justice or their respective state authorities.
Nonprofits should communicate clearly with donors about authorized fundraisers if they are changing platforms. The Attorney General’s office suggests using its Registry Search Tool for vetting fundraising professionals or platforms.
The Registry of Charities and Fundraisers oversees registration and reporting requirements for charities under state law through various programs including initial registration, renewals, delinquencies, dissolutions, professional fundraising oversight, raffles management, and complaint processing. It maintains a searchable database for public research into registered organizations and fundraising professionals.
Rob Bonta leads the California Attorney General’s office according to the official website. The office serves as California’s chief law enforcement authority and operates statewide, providing legal representation and consumer protection services while promoting transparency through public data initiatives such as OpenJustice as detailed online. As part of the executive branch since 1850 the department has evolved alongside California’s growth .