A federal bankruptcy judge has approved the sale of Flipcause, a fundraising platform used by several Central Coast nonprofits, raising questions about what comes next for organizations that relied on the service.
Flipcause, which provides tools for nonprofits to manage donations and fundraising campaigns, filed for Chapter 11 bankruptcy earlier this year. The company’s assets are being acquired by Software4Nonprofits Corporation, which submitted the winning bid in the bankruptcy process.
In a letter to customers, Software4Nonprofits CEO Scott Rassatt acknowledged that many nonprofits have already been impacted by Flipcause’s collapse, citing financial losses, disrupted operations and uncertainty about access to their accounts.
Rassatt said the company plans to restore the platform’s tools and donation pages by the end of March, allowing nonprofits to resume fundraising activities.
He also outlined key changes under the new ownership model. Going forward, donations will be routed directly to nonprofits’ own bank accounts, rather than being held by the platform—a shift the company says is intended to prevent similar issues in the future.
However, uncertainty remains over funds that were previously held by Flipcause.
According to the company, those funds are now part of the bankruptcy proceedings, meaning affected nonprofits will need to file claims in court in an effort to recover their money.
Under the terms of the sale, Software4Nonprofits is not assuming Flipcause’s past debts or legal liabilities, leaving those obligations to be addressed through the bankruptcy process.
The transition to the new platform is expected to move forward immediately, while the bankruptcy court continues to oversee the case.
