A for-profit charitable fundraising platform used by thousands of nonprofit organizations across the US goes bankrupt. Millions of dollars that should have flowed quickly to good causes winding up in the personal bank accounts of executives.
Thousands of nonprofits forced to cut or close critical programs and services— and in some extreme cases to take on additional debt— all while waiting for donations they're unertain to ever receive.
Scores of donors misled. Trust and confidence in the sector potentially undermined by mismanagement and potential abuse
And this outrageous situation is not getting sustained national attention from lawmakers and regulators why?
GoFundMe's non-consensual charity donation pages back in October. FlipCause's fraud and bankruptcy. JustGiving under investigation now. Real money intended towards important causes by good souls. Meanwhile the hits and cuts keep coming for nonprofits / philanthropy...
Your point that boards rarely ask “Where does the money sit after a donor clicks ‘submit’?” really stood out. It’s easy to treat fundraising software as an operational tool instead of part of an organization’s financial infrastructure, but the Flipcause case shows those are governance questions too. Hopefully this pushes more boards to include vendor failure scenarios in their regular risk discussions rather than only after a crisis.
That was an eye opener - thank you for sharing and I will be sharing with my network in Canada for the lessons learned.
A for-profit charitable fundraising platform used by thousands of nonprofit organizations across the US goes bankrupt. Millions of dollars that should have flowed quickly to good causes winding up in the personal bank accounts of executives.
Thousands of nonprofits forced to cut or close critical programs and services— and in some extreme cases to take on additional debt— all while waiting for donations they're unertain to ever receive.
Scores of donors misled. Trust and confidence in the sector potentially undermined by mismanagement and potential abuse
And this outrageous situation is not getting sustained national attention from lawmakers and regulators why?
I also agree; I'm so shocked with how few people know about what is going on.
GoFundMe's non-consensual charity donation pages back in October. FlipCause's fraud and bankruptcy. JustGiving under investigation now. Real money intended towards important causes by good souls. Meanwhile the hits and cuts keep coming for nonprofits / philanthropy...
Your point that boards rarely ask “Where does the money sit after a donor clicks ‘submit’?” really stood out. It’s easy to treat fundraising software as an operational tool instead of part of an organization’s financial infrastructure, but the Flipcause case shows those are governance questions too. Hopefully this pushes more boards to include vendor failure scenarios in their regular risk discussions rather than only after a crisis.