Flipcause cease and desist: What happened & Givebutter's response

‍‍_{Disclaimer: This article is for informational purposes only and does not constitute legal advice. If your organization has funds locked in Flipcause, consult with legal counsel or your state regulator for guidance tailored to your specific situation.}

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On November 12, California’s Attorney General issued a cease-and-desist order against Flipcause for allegedly holding onto donor funds without transparency or consent. 

As part of the order, Flipcause is required to stop its operations and “transfer all of its cash or cash equivalent assets into a blocked bank account” by December 12, 2025. This situation raises serious questions about Flipcause’s future and has major implications for its customers, many of whom are still anxiously awaiting their funds.

‍In response, Givebutter has created a $1M Givebutter Cares Fund, which offers $500 donations to support nonprofit Flipcause customers from the past 12 months, up to $1 million. While a free Givebutter account and Wallet are required to ensure safe and efficient delivery of each donation, no ongoing commitment is required. 

Apply today

Learn more about the $1M Givebutter Cares Fund & apply in minutes →

Keep reading for everything nonprofits need to know about the Flipcause situation and what Flipcause users can do to get back on their feet as soon as possible. 

What happened with Flipcause?

Flipcause was founded in 2012 with a mission to “empower small nonprofits to better engage their communities and fund their causes, regardless of budget or technical ability.” According to their website, over 5,000 nonprofits have raised more than $1B on the platform.

Earlier this year, Flipcause customers started sharing stories of months-long payout delays with limited to no communications. In August, the BBB gave Flipcause an “F” rating, citing a pattern of complaints, delayed funds, and a lack of responsiveness. Oakland Voices has been consistently reporting on Flipcause, releasing seven articles since September, all pointing to a similar story, and a Reddit thread with over 100 comments reflects this troubling narrative.

The new order from California AG Bonta calls on the Oakland-based fundraising platform to immediately stop “all operations related to solicitations for charitable purposes in California,” alleging that Flipcause is “not properly registered as a fundraising platform” and has delayed transferring more than $500K in donated funds to nonprofits. 

Oakland Voices reports that the total number of withheld funds across the country may actually exceed $1.5M.

While we don’t know what is happening behind the scenes at Flipcause, we have connected with several organizations across the country that have recently experienced this issue. With the AG citing 15 nonprofits in California alone, it’s clear that something has gone deeply wrong.

How nonprofits are being impacted

For cash-strapped community groups already reeling from budget cuts, Oakland Voices reported in September that Flipcause payout delays “have led to missed payrolls, staff layoffs, canceled programs, and rising anxiety.”  

"Our nonprofit switched from them in April 2025, and they not only are withholding more than $180,000 in donations, Flipcause also refused to allow the transfer of our recurring donors to our new fundraising platform, a courtesy that every other platform will provide." – Flipcause user

With this new cease-and-desist order in place, nonprofits that still use Flipcause may be at risk of further disruption. Current Flipcause systems—including active donation forms, recurring contributions, payout timelines, and access to remaining funds—are all under question. 

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

What to do right now if your organization uses Flipcause

If you are an active Flipcause customer, we recommend these three steps to mitigate further interruptions and start moving in the right direction:

• Notify staff and board leadership: Loop in core stakeholders and make a plan together.
  
• Document important information: Download or take screenshots of remaining Flipcause balances and correspondence for any consumer complaints, future audits, or regulatory inquiries. Additionally, you can download donor, transaction, and payout records to help preserve historical information.
  
• Communicate with your donors: Transparency is important to retain trust with your community. Givebutter’s rapid response communication template includes sample emails that you can adjust to meet your needs, including a template to notify recurring donors that you’ll be moving to a different donation platform.  

Free templates

Download free rapid response outreach email templates →

‍Choosing your next platform: 4 questions to ask

It’s critical to find a platform rooted in trust and transparency that can keep your mission moving forward. As you compare your options for fundraising and donor management software, consider these commonly requested features to help you feel confident in your decision:

• Reliable, timely payouts
• Strong recurring donation tools 
• Integrated CRM and fundraising 
• Transparent reporting
• Accessible, human support

Regardless of which platform you choose, you deserve transparent access to every dollar entrusted to your organization. 

Be sure to ask these four questions before moving your funds anywhere (and see Givebutter’s response to each as an example):

1. How quickly are funds paid out?

‍Givebutter Wallet allows for same-business-day payouts to your bank account, and funds not stored in Wallet are transferred in a standard 3-5 business day window. All donations become available for withdrawal on a rolling 48-72-hour basis after a donation is made.

2. Where exactly will my money be held?

Funds in Givebutter Wallet are held at Fifth Third Bank, a top-15, publicly traded bank. Standard payout funds are held in our secure payment processor, Stripe.

3. Are any of my funds eligible for FDIC insurance?

‍Yes. Givebutter Wallet funds are eligible for FDIC pass-through insurance up to $250K.

4. Are you in compliance with California AB 488?

Yes. Givebutter is registered as a Charitable Fundraising Platform with the state of California.

For added security and peace of mind, you can also ask your platform if their financials are regularly audited. Givebutter's financials, as an example, go through annual independent external financial audits which are then approved by our Board of Directors.

The bottom line is: At Givebutter, every dollar you raise is always available, always transparent, and always yours. The way it should be.

Givebutter Cares Fund for Flipcause users‍

We also know that actions speak louder than words, and for that reason, our team rallied this week to take action as soon as we heard the news about the cease-and-desist order.

Today, Givebutter is launching a $1M Givebutter Cares Fund, offering $500 to every 501(c) nonprofit that has been a Flipcause customer in the past 12 months.

To receive a $500 donation, eligible organizations must create a free Givebutter account, verify their nonprofit status, and set Givebutter Wallet as their default payout option. Apply here to start the process –>

Please note: This donation comes with no long-term commitment or requirement for any organization to stay on Givebutter. We simply want to help nonprofits get back on their feet. Our goal is to ensure that this money reaches the intended recipients and that we can donate up to $1M in funds in the most scalable, secure, and efficient manner possible.

If you do want to try out the platform, Givebutter’s core fundraising and donor management features are always free to use, and the Givebutter Guarantee ensures that you keep every dollar you raise, with no platform or processing fees.

Apply today

Learn more about the $1M Givebutter Cares Fund & apply in minutes →

Restoring trust in your fundraising platform

Nonprofits trust their fundraising partners to be good stewards of their funds, their data, and their donor relationships. 

Your mission deserves stability, transparency, and trust. Here at Givebutter, we take our role in your mission seriously. Our support team is here 24/7 to provide clear, transparent answers to any questions you may have.

Here’s to a future where trust is not just restored, but strengthened, together.