Investigation into out-of-business PipeVine begins
More on the PipeVine debacle. The closing of this company that processed nonprofit charitable donations for the United Way etc. is impacting a slew of nonprofits including one for which I serve on the board. In the latest news, California Attorney General has started an investigation into its affairs to determine whether charitable giving funds were used to cover administrative expenses and employee salaries according to this New York Times story (registration required):
PipeVine, which processed more than $100 million in charitable contributions last year, stunned the charity world on Monday when it sent out an e-mail message saying it had laid off its 55 employees and folded in the midst of "severe liquidity crisis." Two days later, it issued a statement saying it had uncovered accounting irregularities that masked a shortfall in revenues.