A Central Coast nonprofit says tens of thousands of dollars in community donations are being withheld following the bankruptcy of an online fundraising platform.
R.A.C.E. Matters SLO County said $27,000 in donations are currently inaccessible, after Flipcause, a fundraising company used by nonprofits statewide, filed for bankruptcy.
The California Attorney General’s Office has taken action against the company. Christine Lee, press secretary for Attorney General Rob Bonta, said the state has ordered Flipcause to halt its operations.
“The AG just sent a cease-and-desist letter to Flipcause,” Lee said. “And we do have a release indicating that resources and support are available to those impacted by Flipcause.”
According to a press release from the attorney general’s office, nonprofits affected by the bankruptcy can file a formal complaint with the California Department of Justice. While filing a complaint will not immediately recover withheld funds, the office says it creates a pathway for compliance as bankruptcy proceedings continue.
In an online statement released on Friday, R.A.C.E. Matters said the loss of donations, combined with high overhead costs, contributed to the organization’s decision to close Texture, its community space in Downtown San Luis Obispo.
