74 Colorado Nonprofits Lose Money in Flipcause Bankruptcy

At least 74 Colorado-based nonprofits have been affected by the collapse of a fundraising company called Flipcause. The Oakland, California-based company is a fundraising and community engagement software platform designed to help small nonprofits manage donations and other functions.

Among the 74 nonprofits, claims reach up to $75,000 per organization, and total at least $600,000. Across the US, the company owes more than 3,000 nonprofits a sum of over $29 million.

In November, California’s Attorney General sent a cease and desist order to Flipcause because it delayed transferring at least half a million dollars in donated funds to nonprofits. Flipcause then filed for bankruptcy in December, and more than 3,000 nonprofits around the country fear they will never see the money they raised.

According to reporting by Oakland Voices, at least 74 of those nonprofits are based in Colorado. One of those is the Boulder-based Community Fruit Rescue (CFR), which has been using Flipcause since 2022.

Melanie Hill, the executive director of (CFR), said they have had $15,892.92 withheld by Flipcause since early August. “In the past year we started noticing that they were a little slow to transfer our funds to our bank account,” said Hill.

Then in August, Hill said, Flipcause’s financial team stopped sending the money, and stopped responding to emails. According to Hill, the person CFR was used to communicating with from Flipcause’s financial team said Flipcause was having some issues with their previous ACH processor which required additional security protocols and verifications on transfers, and that they were having a backlog and would transfer the money within the next business day.

“We got that last transfer of funds on Aug. 4. After that, we’ve heard nothing from them on this financial side of things,” said Hill.

Many nonprofits, especially small ones, already struggle enough to raise funds and stay afloat. The bankruptcy occurred near the end of the year, which is a crucial fundraising time for those organizations. Hill said she was never notified of the bankruptcy filing by Flipcause.

According to Oakland Voices, the bankruptcy comes after three years of failed attempts to sell Flipcause. The company had grown to $10 million annually and achieved its highest historical levels of revenue and profitability in 2023 and 2024. In the bankruptcy declaration, Flipcause co-founder Emerson Ravyn said market conditions for software as a service and the financial tech business had deteriorated by late Oct. of 2025, lowering company valuation. Now, all of Flipcause’s clients are left in limbo.

“It’s just sickening to see the amount of money that’s being withheld from all of these groups, including ours,” said Hill, who sent a communication to CFR’s donors and social media followers about the loss of funds. “We are really grateful for our community for supporting us and stepping up. Since we sent out that letter, everybody’s been sending so many messages of support, sending us donations, wanting to find ways to help us, and so we’re just so grateful for the continued support of our community.”

This story aired on the Morning Magazine, KGNU’s weekday morning show featuring in-depth discussions on local news issues. Click here to listen to other episodes of the Morning Magazine.