Bankruptcy hits nonprofits in San Luis Obispo, Santa Barbara counties

January 6, 2026

Flipcause founder Emerson Ravyn

By KAREN VELIE

A California-based fundraising platform filed for bankruptcy reorganization while owing $29 million to nonprofits, including 20 located in San Luis Obispo and Santa Barbara counties. Many of these organizations are now struggling to pay their bills and support their causes.

Started in 2012, Flipcause is a fundraising platform for nonprofit organizations. The Oakland startup handles donations and provides online storefronts and ticketing for nonprofit fundraisers.

Flipcause charges its nonprofit clients a yearly subscription fee of $1500 to $2400 dollars for their services, according to court records. In addition, the platform charges clients 6.9% of each donation plus 30 cents.

Millions of donor dollars flowed through Flipcause to nonprofits focused on a multitude of social issues. Even though Flipcause payments were contracted to be sent out within five days of receipt, about two years ago they began to slow roll payments, multiple clients told CalCoastNews.

Earlier this year, Flipcause stopped paying its clients.

One of those nonprofits is 805UndocuFund, which Flipcause owes $352,500. Providing services to undocumented immigrants in San Luis Obispo, Santa Barbara, and Ventura counties, 805UndocuFund’s mission is to provide short-term financial relief to undocumented residents during disasters while engaging the undocumented immigrant community to advocate for long-term systems change.

Currently, 805UndocuFund is best known for training community members to organize against Immigration and Customs Enforcement (ICE). They also provide information on Department of Homeland Security’s criminal enforcement, with volunteers blowing whistles to warn undocumented immigrants law enforcement is in the area.

Another local nonprofit, 17 Strong in Pismo Beach, provides victory trips to young adults who have battled life-threatening illnesses.

In this case, the treasurer noticed the late payments two years ago and warned the board, which then limited the number of donations going through the fundraising platform. Even so, Flipcause owes 17 Strong $12,000, according to Steve Teixeira, 17 Strong’s board president.

“Flipcause has done a lot of harm to us,” Teixeira said. “We saw the writing on the wall and fought them for two years. We got most of our money.”

Another local nonprofit that noticed the slow roll in payments and limited donations going through Flipcause, The Boys and Girls Club of South San Luis Obispo County, is owed $7,500, said board member Stacy Korsgaden.

Following complaints from multiple nonprofits including 17 Strong, on Nov. 12, the  California Attorney General’s Office filed a cease and desist order against Flipcause regarding the following violations:

• Failure to register with the Attorney General’s Registry of Charities and Fundraisers
• Failure to remit donations
• Failure to file annual fundraising reports

On Nov. 11, less than 100 of the 3,895 nonprofits Flipcause owes money filed a punitive class action against the fundraising platform.

Flipcause filed for Chapter 11 bankruptcy on Dec. 19, listing 3,635 nonprofit creditors. The donation processing company listed assets of $20,228,513 and liabilities of $30,527,260, according to the bankruptcy filing.

The list of Flipcause creditors in San Luis Obispo and Santa Barbara counties include:

• 17 Strong, Pismo Beach
• Boys and Girls Club of South San Luis Obispo County, Oceano
• Central Coast Veterans Helping Veterans, San Luis Obispo
• 805Undocufund – Santa Barbara, San Luis Obispo and Ventura counties.
• Empowerment Avenue, Santa Barbara
• Empowerment Works, Santa Barbara
• Ernest Brooks Foundation, Santa Barbara
• Eva Ulz, esquire, San Luis Obispo
• Hannah E. Murphy, esquire, Grover Beach
• Haven Family Resources, Santa Barbara
• History Center of San Luis Obispo County, San Luis Obispo
• Home Storytellers, Santa Barbara
• Jasper L. Ozbirn, esquire, Santa Barbara
• Knowing You Matter Inc., Arroyo Grande
• Mission San Pedro, Santa Barbara
• North County Christian School, Atascadero
• Paititi Institute, Santa Barbara
• Race Matters SLO County, San Luis Obispo
• The Pacific Coast Conservation Alliance, Paso Robles
• Unite to Light, Santa Barbara

On Monday, the  California Attorney General’s Office filed a motion to appoint a trustee in the Flipcause bankruptcy.

“The record in this case, although small, has established ongoing mismanagement and commingling of funds, dishonesty, self-dealing, and potential fraud,” according to the California Arrorney General’s request for a bankruptcy receiver. “Debtor has utterly depleted its financial resources to the detriment of charity. It would be in the interest of debtor’s 3,200 charitable clients to have the few remaining assets in debtor’s possession be controlled and administered by an impartial third party.

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