Givebutter launches $1 million relief fund for nonprofits affected by Flipcause

Givebutter launched a $1 million relief fund for nonprofits negatively affected by Flipcause. 

After months of complaints from nonprofits who said that Flipcause has been slow to release funds, if at all, California Attorney General Rob Bonta ordered the Oakland-based company to shut down. Flipcause, which was not registered with the state, has until Dec. 12 to transfer all assets to an account accessible to the attorney general’s office, according to the order. 

The “Givebutter Cares Fund” will donate $500 to up to 2,000 nonprofit organizations that used Flipcause in the past 12 months. To qualify, organizations must create a Givebutter account by June 2026 and use its Wallet feature. No long-term commitment is required, according to the company.

‘It’s clear that something has gone deeply wrong’

For months, donation platforms like Givebutter have targeted internet users searching Flipcause or alternatives. This may mark the first major industry response since Oakland Voices began reporting about Flipcause.

“While we don’t know what is happening behind the scenes at Flipcause,” Givebutter CEO Max Friedman wrote, “it’s clear that something has gone deeply wrong.”

Organizations have complained for months that Flipcause withheld donations. Flipcause CEO Sean Wheeler told customers in September the issue would be resolved in weeks. 

Several organizations told Oakland Voices that getting supporters to switch platforms is hard. The timing is tough since many community-based organizations raise money at the end of the year.

“With Giving Tuesday and year-end giving season right around the corner, this disruption could not be happening at a worse time for nonprofits,” Friedman wrote.

Tips nonprofits may consider when choosing donation platforms

In its announcement, Givebutter advises nonprofits still using Flipcause. Givebutter advises groups to notify staff and board members, download their Flipcause data, and inform donors about the issue. 

California’s legislature adopted AB 488 in 2021. The law requires platforms to register with the attorney general, among other regulations. 

As an example of transparency, Givebutter said it holds funds at Fifth Third Bank, uses Stripe to process payments, and is registered with California’s Registry of Charities and Fundraisers. The company noted that it also filed its first annual report this year. The registry has not posted the annual report yet. 

Givebutter responds to Oakland Voices questions

Givebutter’s CEO made the announcement on their website, email, and on Linkedin. Oakland Voices asked whether the fund aims to gain new customers.

“We very intentionally structured this to have no lock-in, no contract, no commitment, and no requirement to continue using Givebutter after receiving funds,” Friedman wrote on Linkedin. “Our priority is safely and efficiently delivering funds to the intended recipients.”

Friedman said the fund could help up to 2,000 affected nonprofits. 

“$500 won’t make every nonprofit whole, but it can still make a difference,” Friedman responded.

Flipcause has until Dec. 12 to respond to attorney general

Flipcause could not be found at their listed Oakland headquarters on Nov. 21, but its website was still active as of Nov. 25.

A few organizations said they recently received long-delayed fund transfers from Flipcause after the cease and desist order. 

The attorney general’s Nov. 12 order requires Flipcause to transfer all cash assets to a blocked bank account by Dec. 12. The company may avoid this by reaching an agreement with the state before the deadline. The order required Flipcause to notify all its staff, board members, and users about the cease and desist demand within 10 days.

How Givebetter Cares works 

• Apply and provide proof of being Flipcause customer in past 12 months
• Create Givebutter account and Wallet between 2025 and June 2026
• Verify nonprofit status
• Set Wallet as default payment