A recent bankruptcy filing by the fundraising software company Flipcause has left numerous non-profit organizations, including Flagstaff Youth Riders (FlyrsAZ), in a precarious financial situation. FlyrsAZ, an organization dedicated to fostering youth development through mountain biking, is grappling with the loss of over $50,000 in raised funds. This incident highlights the significant risks non-profits face when entrusting their donations to third-party platforms. As FlyrsAZ navigates this challenge, they are actively working to rebuild their financial stability and continue their valuable community programs, particularly as they approach their tenth anniversary.
Youth Cycling Non-profit Hit Hard by Fundraising Platform's Collapse
In December of last year, a lesser-known fundraising software firm, Flipcause, declared Chapter 11 bankruptcy, leaving more than a thousand non-profits without access to critical funds. Among those severely affected was Flagstaff Youth Riders (FlyrsAZ), an organization in Flagstaff, Arizona, committed to nurturing resilient and growth-oriented youth through mountain biking. FlyrsAZ found itself with over $50,000 in unrecoverable funds.
Quinn Travis, Executive Director of FlyrsAZ, recounted the unfolding crisis. Initially, concerns arose in the spring when fund transfers, typically processed within seven to ten business days, began taking over twenty. Despite these delays, FlyrsAZ managed to make some withdrawals and continued using the platform for registrations for their 2025 summer and fall programs. However, in late July, Travis requested a $53,000 transfer to cover staff and coaching expenses. This amount never materialized. By December 3, a non-committal email from Flipcause was the last communication FlyrsAZ received before the company officially filed for bankruptcy on December 19.
As an unsecured creditor, FlyrsAZ now joins over a thousand other non-profits collectively owed more than $29 million. Among these are nearly a dozen bike-related charities, with total losses exceeding $139,000. Notable examples include Pedal It Forward NWA LLC from Bentonville, claiming $24,609.04, and Kids on Bikes in Colorado Springs, with $23,761.10 stranded on the platform. Other affected groups include Castle Rock Youth Cycling Club, Trips for Kids Marin, and Mad River Riders Inc., which is owed over $11,000.
The loss of these funds significantly impacts FlyrsAZ's operations. The organization, celebrating its tenth anniversary, had seen program registrations soar to nearly 1,100 in 2025, following a record of over 1,000 in 2024. They had also built a bike park at a local school and hosted eight camp weeks. Travis emphasized that while the services were rendered by FlyrsAZ, the non-profit had to front the costs, and now needs to raise additional funds just to break even. The organization has since transitioned to Sawyer for registrations and Givebutter for donations, launching a new fundraising campaign to raise $100,000 to ensure their continued service to Flagstaff's youth and families.
Investigations into Flipcause's bankruptcy reveal minimal assets compared to its liabilities. Public filings show only $1.2 million in cash and $36,000 in physical assets, dwarfed by over $30 million in debts. Although the company claims $15 million in intellectual property, its value is questionable and unlikely to benefit creditors. Bankruptcy documents suggest that Flipcause's Executive Chairman, Emerson Ravyn, received $455,400 for an "external investment initiative," and substantial salaries were paid to employees, while another $2.7 million investment remains largely unexplained. Flipcause is currently facing at least 27 legal actions from State Attorneys General across several states, including California, which issued a cease-and-desist order for withholding donations and failing to register as a fundraising platform.
This unfortunate event underscores the critical importance for non-profits to conduct thorough due diligence when selecting fundraising platforms. While the promise of streamlined operations is appealing, the potential for significant financial loss due to platform instability or mismanagement is a stark reality. FlyrsAZ's proactive response in switching platforms and launching a new campaign demonstrates resilience, yet the broader implications for the non-profit sector remain a serious concern, highlighting the need for greater transparency and regulation in the digital fundraising landscape.