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'Financial nightmare': Bay Area startup goes bankrupt amid wave of complaints

7 18
01.01.2026

Flipcause listed its headquarters as an office by Oakland’s Jack London Square in a new bankruptcy filing that shows the extent of the startup’s debts to nonprofit groups.

The idea for Flipcause was simple. Starting in 2012, the Oakland startup provided technical tools for thousands of nonprofit organizations, handling the work of online storefronts, donation systems and ticketing pages. Millions of donor dollars flowed through Flipcause’s tech to nonprofits focused on just about every societal issue.

Then, this year, much of that money suddenly stalled under Flipcause’s control, as evidenced by testimonials from client companies on social media, with the Better Business Bureau, and to SFGATE. Nonprofits across the country were left in the lurch, unable to access the donor cash that funds their work in education, food distribution, health care, legal defense and more. 

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In October, a class-action lawsuit accused Flipcause of fraud, led by a nonprofit that said it was out $75,000. In November, California Attorney General Rob Bonta filed a cease and desist against the company, accusing it of withholding $615,000 in donations. Finally, on Dec. 19, Flipcause filed for bankruptcy, proof of just how far the startup has fallen.

The bankruptcy filing lists some astonishing figures. Flipcause has about $30.5 million in debts, more than $29 million of which is money owed to more than 3,200 nonprofits, foundations and other organizations. Flipcause owes $1.2 million to the Sweet Relief Musicians Fund, a nonprofit for struggling musicians based in Brea, California. Loveland Foundation, which provides therapy and programming for Black women, is owed $701,000. Flipcause also owes $100,000 or more to the Second Harvest Food Bank of San Joaquin & Stanislaus Counties, the California Collaborative for Immigrant Justice, San Diego-based Border Angels and about two dozen other organizations.

“Donors placed their trust in Flipcause to ensure their contributions reached those in need,” Bonta said when he

© SFGate