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Tech Startup's Nightmare: How One Company is Ghosting Nonprofits and Draining Their Bank Accounts

a man smoking a cigarette in front of a computer

Photo by Alex Gagareen on Unsplash

In the cutthroat world of Silicon Valley, another tech startup is making waves , and not in a good way. Flipcause, an Oakland-based donation processing platform, is under fire for allegedly stiffing nonprofits across the country, leaving organizations high and dry and struggling to keep their missions alive.

The Money Vanishing Act

Immagine working tirelessly to support your community, only to have a tech platform play keep-away with your hard-earned donations. That’s the nightmare scenario facing dozens of nonprofits right now. From Youth in Arts in Marin County to the Shakespeare Youth Festival in LA, organizations are reporting significant financial delays and complete payment disappearances.

Behind the Scenes Drama

Even Flipcause’s own employees are jumping ship. One anonymous staffer told reporters, “I am going to quit over this issue. The way it is being handled is horrendous”. The Better Business Bureau has logged a staggering 89 complaints, with 81 remaining unresolved , earning Flipcause a shameful F rating.

The Human Cost

This isn’t just about numbers. Real organizations are facing existential threats. Julia Wyson from the Shakespeare Youth Festival is literally telling her staff to wait on paychecks. Some nonprofits are even considering shutting down completely, all because a tech platform can’t seem to handle basic financial transactions.

As the tech world continues to disrupt everything from taxi services to dating, it seems some “innovations” are more destructive than transformative. Flipcause’s story is a stark reminder that behind every platform are real humans with real needs.

AUTHOR: rjv

SOURCE: SFist