Software4Nonprofits, the new owner of Flipcause, said it expects to have the platform restored by March 31, but that nonprofits should not expect to recover lost donations through the sale.
“Many of you have faced severe financial loss and operational setbacks,” Software4Nonprofits (S4NP) CEO Scott Rassatt wrote in a March 19 letter to customers. “This is unacceptable.”
Rassatt directed customers to file claims through the bankruptcy court.
To date, 357 nonprofit organizations have filed claims, including Oakland’s Movement Strategy Center.
“Any funds that were previously held in your Flipcause account are subject to the Chapter 11 bankruptcy proceedings,” he wrote.
Rassat explained that S4NP handles donations differently than Flipcause. Rather than collecting and then distributing contributions, donations made through its platform will go directly to nonprofits’ bank accounts.
“We maintain the highest levels of compliance and security… where all funds go directly from your donors to your bank account without any possible interference,” Rassatt wrote. “This ensures that what happened with Flipcause couldn’t happen again.”
‘S4NP has purchased a hot mess’
Some Flipcause customers have already moved on.
Coming to the Table, a restorative and racial healing project sponsored by Restorative Justice for Oakland Youth (RJOY), is owed $70,747.61, according to bankruptcy filings.
“I recognize S4NP has purchased a hot mess and I do appreciate them acknowledging the difficult situation in which we impacted nonprofits find ourselves,” Dr. Giavanni Washington, program manager, said. “We switched back to DonorBox in November. We are very happy with the platform and the daily deposits.”
Software4Nonprofits is not currently registered to operate as a charitable fundraising platform in California, an Oakland Voices review of the Department of Justice’s Registry of Charities and Fundraisers found. The company did not respond to an emailed inquiry regard its status with the Registry.
Flipcause price much lower than valuation
Flipcause, started in 2012, claimed to operate a “merchant of record” model, according to Co-Founder Emerson Ravyn’s sworn testimony.
The platform collected donations online for a decade until transfers slowed in late 2024 and came to a halt by summer 2025.
At the time of its December 2025 bankruptcy, the company faced multiple lawsuits and owed nearly $29 million to more than 3,200 nonprofit customers.
The company attempted to sell the platform for three years. Software4Nonprofits purchased the platform for $400,000, far below the $15 million valuation cited by a co-founder in bankruptcy filings.
Flipcause could still be investigated
Amid concerns raised in court of mismanagement and possible fraud, a Delaware bankruptcy judge approved the appointment of an independent trustee.
Chapter 11 Trustee Jeffrey Testa told customers his priorities were to sell the company quickly and then investigate what happened to the funds.
Following the sale’s approval, that investigation may include attempts to recover, or “claw back,” money paid to insiders before bankruptcy. Court filings show Flipcause staff and family members received at least $3.8 million.
Be the first to comment