SEPA Mujer, a nonprofit organization based in Patchogue, New York, claims it is owed approximately $27,000 by Flipcause, a company that facilitates online donations for nonprofit entities. This assertion comes in the wake of Flipcause’s recent bankruptcy filing, which has left various nonprofits across the United States grappling with uncertainty regarding previously collected donations.
Martha Maffei, the chief executive officer of SEPA Mujer, expressed frustration over the situation, stating, “We shouldn’t have to fight for getting our money back. This funding belongs to the community. It’s a matter of can we continue with the services or not?”
As the third Long Island nonprofit to raise similar concerns, SEPA Mujer joins others in voicing alarm over the potential loss of critical funding. According to bankruptcy records, Flipcause owes a staggering $29 million to over 3,000 nonprofits nationwide.
Concerns Over Fund Recovery
The bankruptcy case reveals troubling financial practices within Flipcause. In the months leading up to the filing, company executives reportedly distributed millions of dollars to themselves and related entities. Notably, Executive Chairperson Emerson Ravyn received $450,000 purportedly for an external investment initiative. Additionally, records indicate that $2.8 million was funneled to other companies owned by Ravyn, and $270,000 was paid to his brother, Rolando Viliao, along with a company he controls.
Maffei stated that communications with Flipcause have ceased, complicating efforts to recover the missing funds. The financial strain threatens SEPA Mujer’s ability to provide essential services to vulnerable women and girls in the community.
Other Long Island nonprofits have reported similar financial distress. The Michelle O’Neill Foundation, located in Long Beach, claims it is owed approximately $130,000, according to filings related to the bankruptcy.
The situation underscores a broader issue facing nonprofits that rely on third-party donation platforms. As these organizations navigate the fallout from Flipcause’s financial collapse, they remain uncertain about the fate of the funds collected on their behalf.
Impact on Nonprofits
The loss of these funds could have significant implications for the services provided by affected nonprofits. Organizations like SEPA Mujer play a crucial role in their communities, offering support and resources to those in need. The inability to secure these funds threatens not only their operations but also the well-being of the individuals they serve.
As this story develops, the pressing question remains: how will the affected nonprofits recover the funds that rightfully belong to them? With the bankruptcy process underway, many organizations are left hoping for a resolution that will allow them to continue their vital work in the community.
