In 2025, donation platform Flipcause collapsed owing more than 3,200 nonprofits nearly $29 million; bankruptcy records later showed $3.8 million went to executives, relatives and related firms before liquidation

Users began reporting delayed transfers of donations as early as late 2024

An Oakland-based donation platform collapsed after thousands of nonprofits said they were left waiting for donations that had been collected for their organisations. Flipcause filed for Chapter 11 bankruptcy in December 2025, listing nearly $29 million owed to more than 3,200 organisations across the US, Oakland voices reported.The company had provided fundraising services that allowed nonprofits and other causes to collect donations, communicate with donors and create websites. According to Flipcause, it served more than 5,000 nonprofits. But users began reporting delayed transfers of donations as early as late 2024.The problems continued into 2025. The California attorney general issued a cease and desist order, while payment processor Stripe froze Flipcause funds and ended its services to the company. Flipcause then sought bankruptcy protection after it was unable to pay its creditors.Bankruptcy records later showed that $3,830,975 was paid to Flipcause executives, family members and related companies between December 2024 and the company’s bankruptcy filing on December 19, 2025. At the same time, nonprofits were still waiting for donations to be transferred to them.

3,200 plus nonprofits left as creditors

Flipcause’s bankruptcy filing listed 3,276 unsecured creditors. Oakland Voices reviewed the records and found that about 3,268 were nonprofit organisations and foundations spread across all 50 states, Washington DC and Puerto Rico.Some organisations owed large amounts said the missing money was affecting their work. 805UndocuFund, which supports immigrant families and communities affected by disasters in California, was owed $352,500.“These funds were never meant to enrich executives, they were entrusted to Flipcause to be held temporarily and transferred to mission-driven organizations serving people in crisis. Instead, nonprofits and vulnerable families were treated as expendable,” Primitiva Hernandez, executive director of 805UndocuFund, told Oakland Voices.Hernandez said the money was meant for food, emergency assistance, legal support and rapid response. She said the organisation had been forced to delay aid and stretch its limited resources because the funds had not been released.Other nonprofits reported similar problems. Space Between, a Seattle organisation, was owed $21,675.40. Carlos Fernandez of the organisation said it was difficult to deal with the situation because of the importance of its donors and community. “It’s hard not to get emotional given how much we love our donors and our community,” Fernandez said.Sahar Education, based in Washington state, was owed $19,493.08. Its representative, Allie Renar, said donors were also concerned about claiming tax deductions because the money they had given had not reached the organisation.

Bankruptcy hearing raises questions

The financial questions became clearer during a March 6, 2026 creditor meeting attended by more than 150 nonprofit leaders. The meeting was part of the bankruptcy process and gave organisations owed money a chance to question Flipcause Executive Chairman Emerson Ravyn.At one point, more than 194 people were on the Zoom call. California Deputy Attorney General Kim Kasreliovich and a representative of the Kansas attorney general’s office also attended.The meeting lasted about three hours as nonprofit representatives asked what had happened to their money and how Flipcause had managed its finances.Amanda Cordano, executive director of Ms President US, questioned the company’s handling of nonprofit donations. “When you speak about the donations from nonprofits considered assets and you then take those assets and invest in other things, is it a little bit like a ponzi scheme?” she asked.Ravyn gave few detailed answers during the meeting. He said Flipcause’s books and records, which were under the control of a Chapter 11 trustee, would need to be reviewed. He also said, “Our operations have been consistent since the founding of the company,” Ravyn said.

Company treated donations as its assets

Ravyn said Flipcause operated under a ‘merchant of record’ model. Under this system, the company treated donations as its assets when they were received. Its records then showed amounts owed to nonprofits as ‘payables’.The donations and Flipcause’s own funds were deposited into a single bank account rather than being kept separately for each nonprofit.When asked about delayed payments, Ravyn said Flipcause used ‘multiple systems’ to process payments and that payments were made after risk controls were assessed.The company said it faced liquidity problems in 2025 after a three-year effort to sell the business failed. Ravyn said Flipcause processed about $100 million annually during that period, but declining payment volume and the failed sale left the company unable to meet its obligations.

More than $3.8 million paid to insiders

The bankruptcy records showed that $3,830,975 was paid to executives, relatives and related companies during the year before the bankruptcy filing.Ravyn and entities connected to him received about $3.28 million. This included $455,400 paid to Ravyn as ‘bridge financing’, $2.76 million to RGI Venture Studio, which he said he owned, and $66,469 to Lockwell, a cybersecurity company he founded and runs.Former CEO Rolando Valiao received $270,125, including $130,000 personally and $140,125 paid to Ocean, a business Flipcause outsourced work to and which Valiao runs under the name ‘Romeo Ocean’.CEO Sean Wheeler received $212,333, including $183,333 in salary and $29,000 described as an ‘external investment initiative’. Meanwhile, Jessica Wheeler received $63,448 in salary.Ravyn described some of the payments as ‘bridge financing to the exit’, referring to loans executives said they had made to the company that were expected to be repaid after a sale.But the sale did not happen. Flipcause had worked for years to find a buyer, including an auction in July 2025, but no buyer emerged.The company later entered bankruptcy with $70,000 in its Citibank account and $1.225 million owed to secured creditors. Its liabilities exceeded its assets by $10 million.

Trustee to investigate payments

During the March creditor meeting, US Trustee Jon Lipshie asked Ravyn whether more than $5 million had been paid out personally in recent years. Ravyn said yes. When asked whether the amount exceeded $10 million, he said he did not know.Independent bankruptcy trustee Jeffrey Testa said he would examine past financial transactions and seek to recover money where possible.“I have powers as trustee to investigate and clawback. We will absolutely investigate any transfers that went out,” Testa said.Nonprofits were also encouraged to file claims through the bankruptcy court. Under bankruptcy law, creditors are paid according to a set order, meaning secured creditors and certain other costs can be paid before unsecured creditors such as the nonprofits affected by Flipcause.The final amount that nonprofits may recover therefore depends on the assets available and the outcome of the bankruptcy process.