Another Long Island nonprofit is speaking out, saying it is owed thousands of dollars by a donation-processing tech company that filed for bankruptcy last month.
SEPA Mujer, a Patchogue-based nonprofit that supports women and girls in need, says it is owed approximately $27,000 by Flipcause, a company that manages online donations for nonprofit organizations. SEPA Mujer is now the third Long Island nonprofit to come forward with similar claims against the company.
“We shouldn’t have to fight for getting our money back,” said Martha Maffei, chief executive officer of SEPA Mujer. “This funding belongs to the community. It’s a matter of can we continue with the services or not?”
Flipcause filed for bankruptcy last month, leaving nonprofits across the country uncertain about whether they will ever receive donations that were already collected on their behalf. According to bankruptcy records, the company owes roughly $29 million to more than 3,000 nonprofits nationwide.
A deeper review of those records shows that in the period leading up to the bankruptcy filing, Flipcause executives paid out millions of dollars to themselves or to companies they control.
Records indicate $450,000 was paid to Executive Chairperson Emerson Ravyn for what was described as an external investment initiative. An additional $2.8 million went to other companies Ravyn controls. Another $270,000 was paid to Ravyn’s brother, Rolando Viliao, and a company he owns.
Meanwhile, nonprofits say they were left in the dark.
Maffei told News 12 that Flipcause stopped responding to her emails as her organization tried to recover the missing funds. She said the loss threatens services SEPA Mujer provides to vulnerable women and girls in the community.
“It’s just not fair,” Maffei said.
Other Long Island nonprofits report similar losses. The Long Beach-based Michelle O’Neill Foundation is owed approximately $130,000, according to bankruptcy filings.
News 12 has reached out to Flipcause again for comment but has not received a response.