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Count me in!

Submitted by on 1, January 5, 2009 – 7:45 amNo Comment

As we reported previously, the Alameda Education Foundation wasn’t the only group whose funds for services were withheld by online registration and payment processing vendor Count Me In. As it turns out, about 220 non-profits, Little Leagues and other organizations are out about $5 million, according to this piece in the Los Angeles Times.

We broke the story that the foundation sued Bellevue, Wash.-based Count Me In in early December, in an effort to recoup about $40,000 in online parent payments for after-school enrichment classes. The loss of those funds and other financial problems have since forced the foundation to restructure, laying off its executive director and shrinking programs to a handful of core offerings.

The company’s founder and CEO, Terry Drayton, acknowledged to the Times that his company used funds that belonged to its clients to pay for operating expenses. Drayton also admitted the problem stretched back two years.

Drayton said he is working to find investors to bolster the company and help it pay back the money it owes. Meanwhile, a number of other organizations across the country have sued Count Me In to retrieve the tens of thousands of dollars they are owed, and others are attempting to force the company into bankruptcy to get their money back.

Stay tuned.

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