Black Trans Communities Are Paying the Price for a Payment Firm’s Collapse (Exclusive)
Organizations like The Okra Project are bearing the brunt of a California startup’s alleged mismanagement. (Shutterstock Creative/Teacher Photo.)
The Okra Project, a nonprofit supporting Black transgender, nonbinary, and gender-expansive communities, has reportedly lost more than $60,000 after nonprofit payment firm, Flipcause, filed for bankruptcy earlier this year.
The bankruptcy filing allows Flipcause to withhold any payments to nonprofits. According to KPTV, this amounts to $30+ million for more than 3,000 nonprofits across the United States, as reported in December filings. However, a Bloomberg article noted that one of the company’s founders allegedly earned $3 million in salary before the bankruptcy.
“The loss of this funding forced us to pause programs that provide housing support, food security, and direct aid to Black trans people nationwide, Okra Project’s Executive Director, Gabrielle Inès Souza, told POLISH. “These aren’t abstract services. They’re resources that help people stay housed, eat regularly, and access care.”
A California-based firm, Flipcause, filed for bankruptcy last December after California Attorney General Rob Bonta ordered the firm to stop operations. The order was issued due to alleged significant delays in transferring funds to the nonprofits they were supposed to support.
In addition to the withheld funds, the Okra Project has lost over 50% of its recurring donor revenue following Flipcause’s bankruptcy, with more than 600 recurring donors disconnected, leaving the organization short of critical funding for its operations. This loss has forced the organization to pause any vital programming serving Black and Brown trans communities nationwide, including housing, food, wellness, emergency aid, and direct assistance.
The Okra Project isn’t the only organization that serves Black and Brown trans communities feeling the brunt of Flipcause’s collapse. Okra Project’s sibling organization, Black Trans Travel Fund, was also impacted, along with Oregon-based Garden of Peace and others. Oakland Voices reported on March 9th that the firm Software4Nonprofits will buy Flipcause for $400,000 in bankruptcy court, far lower than its estimated $15 million valuation at the time of filing.
POLISH reached out to Flipcause for a comment.
Beginning as a grassroots organization to support the Black trans community, The Okra Project evolved into a registered 501(c)(3) nonprofit delivering a variety of support services to the community. a full spectrum of support services—from emergency mutual aid to wellness programming and mental health funding.
Please consider donating directly to the organization at theokraproject.com.
