California Attorney General demands Flipcause shutdown operations

California Attorney General Rob Bonta ordered Oakland-based Flipcause to stop operations and transfer all of its cash to a “blocked bank account” by Dec. 12. 

A blocked account requires legal authorization for access. 

The order, dated Nov. 12, gives Flipcause 30 days to send the attorney general an accounting of all its assets since 2015 as well as a list of all charities Flipcause provided its platform to since 2015. 

Flipcause has not responded to repeated requests for comment.

Nonprofits across the country have accused the fundraising platform of withholding hundreds of thousands of dollars in donations. 

Nonprofits hope to receive outstanding donations

The gravity of the order stunned East Oakland Collective Executive Director Candice Elder. 

“I’m shocked, but glad to see it,” Elder told Oakland Voices. Flipcause owed East Oakland Collective more than $127,000. The company transferred $50,000 to her organization in September, but the company is still withholding more than $76,000.

She hopes that Flipcause complies and organizations can get the donations they depend on to serve their communities. 

“Hopefully they can stop the bleeding that’s happening to organizations and they won’t harm any other organization,” Elder said. “I am hopeful that this leads East Oakland Collective and other organizations closer to receiving our outstanding donor contributions.”

Attorney general has oversight over fundraising platforms

State law grants the attorney general oversight authority over fundraising platforms that allow organizations to solicit donations. Since 2024, the law has required platforms to register. 

The attorney general assessed Flipcause with a total of $70,000 in penalties. The company failed to register as a donation platform or submit annual reports for two years, provided services while unregistered, and did not transfer donations to organizations within five days, according to the order. According to the attorney general’s website, the first annual report was due July 15 of this year.

Flipcause can appeal the decision within 30 days to Deputy Attorney General Kim Kasreliovich, attorney for the Registry of Charities and Fundraisers.

Flipcause caused ‘significant financial stress’ 

Oakland Voices reported in October that Flipcause was not registered to operate as a platform in California. 

Flipcause failed to register, did not file required annual reports, and withheld donations for more than 60 days, according to the order.    

Flipcause caused “financial stress” to charities, Bonta said, and it is “unacceptable.”

“Donors placed their trust in Flipcause to ensure their contributions reached those in need,” Bonta said in a statement. “Instead, charities are experiencing significant financial stress due to the platform holding these funds back.” 

The order lists 17 affected organizations that are owed $615,242.57. Flipcause withheld donations from three nonprofits for more than 60 days. Another 14 said Flipcause is still holding their funds, despite repeated requests. 

Across the country, nonprofits have told Oakland Voices that Flipcause is withholding more than $1.5 million in donations.

Flipcause must halt operations, has 30 days to appeal

The cease and desist order requires Flipcause and CEO Sean Wheeler to immediately stop its operations, including soliciting donations. 

Within 30 days of the order, Flipcause must send the attorney general an accounting of all its assets since 2015 as well as a list of all charities Flipcause provided its platform to since 2015. This is similar to the information required in the annual report. 

Unless Flipcause responds and reaches an alternative agreement with the attorney general, the company must also transfer all of its cash to a “blocked bank account.” 

The attorney general will “retain jurisdiction” over the Flipcause for compliance, according to the order. 

Flipcause must provide a copy of the order to all employees, owners, officers and every nonprofit it is currently doing business within 10 days. 

If Flipcause does not confirm that it ceased operations and complied with the order, penalties will accrue at a rate of $100 per day.

Flipcause could not be found at the address of its Oakland headquarters. As of Nov. 14, the Flipcause website is still online.

14 nonprofits listed by California Attorney General’s cease and desist order to Flipcause