Donation platform collapses owing 3,200 nonprofits nearly $29 million

…Rico. Some organisations owed large amounts said the missing money was affecting their work. 805UndocuFund, which supports immigrant families and communities affected by disasters in California, was owed $352,500. “ These funds were never meant to enrich executives, they were entrusted to Flipcause to be held temporarily and transferred to mission-driven organizations serving people in crisis. Instead, nonprofits and vulnerable families were treated as expendable ,” Primitiva Hernandez, executive director of 805UndocuFund, told Oakland Voices. Hernandez said the money was meant for food, emergency assistance, legal support and rapid response. She said the organisation had been…

…problems. Space Between, a Seattle organisation, was owed $21,675.40. Carlos Fernandez of the organisation said it was difficult to deal with the situation because of the importance of its donors and community. “ It’s hard not to get emotional given how much we love our donors and our community ,” Fernandez said. Sahar Education, based in Washington state, was owed $19,493.08. Its representative, Allie Renar, said donors were also concerned about claiming tax deductions because the money they had given had not…

…representatives asked what had happened to their money and how Flipcause had managed its finances. Amanda Cordano, executive director of Ms President US, questioned the company's handling of nonprofit donations. “ When you speak about the donations from nonprofits considered assets and you then take those assets and invest in other things, is it a little bit like a ponzi scheme? ” she asked. Ravyn gave few detailed answers during the meeting. He said Flipcause's books and records, which were under the control of a Chapter 11 trustee, would need to be reviewed. He also said, “Our operations have…

…a ponzi scheme?” she asked. Ravyn gave few detailed answers during the meeting. He said Flipcause's books and records, which were under the control of a Chapter 11 trustee, would need to be reviewed. He also said, “ Our operations have been consistent since the founding of the company ,” Ravyn said. Company treated donations as its assets Ravyn said Flipcause operated under a 'merchant of record' model. Under this system, the company treated donations as its assets when they were received. Its…

…When asked whether the amount exceeded $10 million, he said he did not know. Independent bankruptcy trustee Jeffrey Testa said he would examine past financial transactions and seek to recover money where possible. “ I have powers as trustee to investigate and clawback. We will absolutely investigate any transfers that went out ,” Testa said. Nonprofits were also encouraged to file claims through the bankruptcy court. Under bankruptcy law, creditors are paid according to a set order, meaning secured creditors and certain other costs can be…