California Attorney General Rob Bonta today sent a cease and desist order to Flipcause demanding an immediate stop to all its operations, including all solicitations for charitable purposes. Oakland-based Flipcause is a fundraising and community engagement platform designed to help small nonprofits manage donations from a single dashboard. However, Flipcause has delayed transferring donated funds to nonprofits — totaling approximately $500,000 in donations to date. In today’s cease and desist order, the Attorney General warns that Flipcause is not properly registered as a fundraising platform and has failed to remit donations. Due to these violations, the Attorney General is seeking monetary penalties of up to $70,000.
“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,” said Attorney General Bonta. “We are holding Flipcause accountable for withholding these funds and ensuring that every cent possible reaches those it was intended for.”