The Black Lives Matter (BLM) organization is now on the verge of financial collapse, recent reports suggested.
According to the report published by the Washington Free Beacon, the organization is grappling with a substantial deficit, jeopardizing its future operations. The documents it obtained also indicated that Black Lives Matter suffered significant financial losses and investment downturns throughout 2022.
In its latest tax year, the organization reported an alarming $8.5 million deficit, and the value of its investment accounts plummeted by approximately $10 million. Particularly devastating was a transaction that resulted in an 85% loss of $961,000 from a securities sale worth $172,000.
Despite the financial challenges, Black Lives Matter continued to award substantial contracts to close associates and relatives of its former executive director, Patrisse Cullors. These questionable financial decisions only serve to exacerbate the organization’s already dire situation.
Black Lives Matter emerged in 2013 following the acquittal of Trayvon Martin’s killer, swiftly becoming one of the most influential entities advocating for social justice in the United States. However, it seems that the organization’s ambitious goals have been overshadowed by a lack of financial prudence.
Name an organization that managed their money worse than BLM. https://t.co/zQMwZAVW2G pic.twitter.com/OBWFWEAgcM— The Redheaded libertarian (@TRHLofficial) May 24, 2023
The financial struggles come in the wake of various setbacks, including a significant decline in fundraising efforts. In the 2022 fiscal year, Black Lives Matter raised a mere $9.3 million, marking an 88% decrease compared to the previous year.
Furthermore, the organization was forced to halt its online fundraising operations in February 2022 due to compliance and transparency issues, further hindering its financial stability.
Disturbingly, a considerable portion of the raised funds was allocated towards luxury properties in Los Angeles and Toronto. Additionally, significant sums were paid to contractors associated with Cullors and her circle. Cullors’s brother, Paul, and his companies received $1.6 million for security services rendered to the organization. Other friends and family members also received substantial consulting fees.
Paul Kamenar, an attorney representing a watchdog group, remarked, “Despite stepping down due to allegations of misusing BLM’s funds, it appears that Patrisse Cullors is still ensuring the money stays within her family’s grasp.”
Critics have accused the organization of mismanagement and financial impropriety, leading to ongoing investigations by the Internal Revenue Service and multiple state attorneys general.
“BLM raised $90 million just in 2020 and tens of millions since then. Now the organization is on the verge of declaring bankruptcy. Where did all the money go?” a Twitter user reported.
“Remember when conservatives started a “Build the Wall” non-profit and some of them got indicted and jailed for allegedly misappropriating funds? Will the Feds do the same to BLM after they squandered $85+ million & are nearing bankruptcy? Or do the laws only apply to MAGA…” lawyer, DC Draino lamented.
While Patrisse Cullors’s resignation was prompted by the allegations of financial mismanagement, skeptics argue that these issues persist under the leadership of her chosen successor, Shalomyah Bowers. The organization underwent a leadership transition in the previous summer, with Cicley Gay, a nonprofit sector consultant, assuming the role of board of directors’ head.
