“A pattern of complaints,” prompted the Better Business Bureau to warn that nonprofits have experienced “significant difficulties accessing donations raised through the Oakland-based fundraising platform Flipcause.
In the past three years, BBB received 105 complaints – 95 within the past year – from nonprofit organizations about Flipcause, said Alma Galvan, regional communications manager for the BBB serving the Bay Area and Northern Coastal California.
Last month Oakland Voices was the first to report that nonprofits were complaining of delays that kept them from accessing donations. Since then, 35 new complaints have been filed.
Organizations have since told us that Flipcause owes them more than $888,000, including multiple Oakland-based organizations. Flipcause owes Urban Mentors Network $1,600 and Restorative Justice for Oakland Youth (RJOY) $70,000. Flipcause owes East Oakland Collective more than $120,000.
The warning brings new scrutiny to Flipcause, which nonprofits across the country say is withholding hundreds of thousands of dollars in donations.
Flipcause did not respond to Oakland Voices’ most recent request for comment. In an email obtained by Oakland Voices, a verified Flipcause employee told one nonprofit staff member that the company was doing their “best” to resolve the backlog of delayed donation transfers.
“The rating is based on a pattern for this company not responding and a pattern of complaints.”
Alma Galvan, regional communications manager, BBB
BBB rates Flipcause “F”
Flipcause is rated an “F” by the BBB, which rates businesses, from A+ to F.
“The rating is based on a pattern for this company not responding and a pattern of complaints,” Galvan told Oakland Voices.
When BBB receives a complaint about a business, it forwards the complaint to the business within two days and requests a response within 14 days. The business can respond, resolve, or dispute the complaint.
The BBB typically closes cases within 30 days, and outcomes are listed as resolved, answered, unresolved, unanswered, or unpursuable if the business cannot be located.
Galvan said Flipcause had previously been responsive to the BBB but stopped replying in 2024.
The BBB last reached out to Flipcause in August.
“To date there’s been no response,” Galvan said. BBB “is urging the company to communicate with affected organizations to resolve outstanding issues,” according to the warning.
“Flipcause is holding our money hostage, yet it has no problem drafting money from our accounts for monthly payments to use the platform.”
Keiva Hummel
Complaints from across the U.S.
Nonprofits across the country have reported that Flipcause is withholding funds.
One nonprofit in Washington said it made multiple transfer requests over the past year. One transaction has been pending for a year. In total, Flipcause owes the group $13,000.
Helpless Hounds in Oklahoma said it has been unable to access more than $4,700 since June. That’s a “huge deal” for their rescue organization, Vice President Jennie Loucks said, because the group owes money to veterinarians.
“We are taking on less dogs because we owe our vets,” Loucks said, “and these withheld funds were allotted to pay vet bills.”
The National Coalition for Dialogue & Deliberation said it experienced delayed donation transfers for a year. In an online review, Keiva Hummel wrote that it impacted their ability to pay their staff.
“Flipcause is holding our money hostage, yet it has no problem drafting money from our accounts for monthly payments to use the platform,” Hummel wrote.
Several organizations have since left the platform. One organization that provides fiscal sponsorship required all its projects to transition from Flipcause. But leaving isn’t always easy. Some nonprofits said they’ve struggled to move their supporters to other donation platforms.
BBB’s advice for nonprofits
BBB regularly issues warnings to consumers about scams or other unscrupulous business practices.
The BBB’s Flipcause warning advises consumers to:
- Research before committing by reviewing complaints and reviews on the BBB website
- Get contracts in writing
- Keep thorough records of communications and transactions
- Report issues to the BBB or their state Attorney General’s office.
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