Flipcause bankruptcy leaves thousands of nonprofits unpaid as executives receive millions

Flipcause, a donation-processing service that supported roughly 5,000 nonprofits, sought Chapter 11 protection in December 2025 after collected donor funds remained locked in its accounts. The petition lists nearly $29 million owed to 3,276 unsecured creditors, the overwhelming majority being nonprofit organizations across all 50 states, Washington DC and Puerto Rico. Records indicate $3,830,975 was disbursed to executives, relatives and affiliated companies between December 2024 and the filing, including $455,400 to Executive Chairman Emerson Ravyn and millions to his venture studio and cybersecurity firm.

A creditor hearing on March 6, 2026, attended by more than 150 nonprofit leaders and state attorneys general, featured pointed questions about the “merchant of record” model that treated donations as company assets. Ravyn provided scant detail, noting that payments were processed after risk controls and that a failed sale left the firm illiquid. Federal trustee Jeffrey Testa announced an investigation to claw back the insider transfers, while charities such as 805UndocuFund, Space Between and Sahar Education continue to await the remaining funds.