In this week’s episode of Nonprofit Newsfeed, the hosts delve into significant challenges impacting the nonprofit sector, focusing on two major stories: the Flipcause donation platform’s bankruptcy and the legal troubles faced by Greenpeace.
Flipcause Bankruptcy and Nonprofit Losses
The episode opens with an update on Flipcause, a donation platform that went bankrupt, leaving nonprofits in financial turmoil. The discussion emphasizes the importance of nonprofits maintaining control over their payment gateways to avoid similar pitfalls.
Greenpeace Legal Challenges
The episode also covers a $345 million verdict against Greenpeace in the Dakota Access Pipeline lawsuit, highlighting the vulnerability of nonprofits involved in activism.
View Episode Transcript
This week on the Nonprofit News Feed, George Weiner and Nick Azulay discuss the Flipcause donation platform’s bankruptcy and Greenpeace’s significant legal battle.
Flipcause Bankruptcy Fallout
Eagle-eared listeners may recall the beleaguered Flipcause platform—a donation tool that went underwater last year. Recent bankruptcy filings reveal the company owes million to over 3,200 nonprofits. Despite a self-valuation of million, a recent bidding process valued the entire platform at just ,000. For nonprofits like the Sweet Relief Musicians Fund (owed .2 million) and the Loveland Foundation (owed ,000), the prospects of recovery looks slim. The California Attorney General has issued a cease and desist order, and 29 organizations have filed a lawsuit alleging fraud. The core takeaway: nonprofits must maintain direct control over their payment gateways (like Stripe or Braintree) to avoid having their funds held in third-party “safe” accounts that can evaporate.
Greenpeace Legal Battle
The sector is also watching a million verdict against Greenpeace in a North Dakota lawsuit related to the 2017 Dakota Access Pipeline protests. This case is seen as a “SLAPP” suit (Strategic Lawsuit Against Public Participation), which targets activist organizations. The hosts discuss the existential threat such litigation poses to nonprofits involved in direct action and environmental advocacy.
Dolly Parton’s Imagination Library
On a lighter note, Dolly Parton’s Imagination Library reached a massive milestone in Alabama, sending free books to over 9,600 children in Madison County alone. The program aims to increase literacy and interest in reading for children from birth to age five.
Dad Joke:
What did the nonprofit dog shelter call their new meditation program? A “werewolf.”
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