Black Lives Matter charity faces legal and financial troubles three years after riots.

The Struggles of Black Lives Matter Charity

Three years after the murder of George Floyd sparked “racial justice” protests and riots, the national Black Lives Matter charity is wrestling to stay afloat amid major legal and financial pressure.

The Black Lives Matter Global Network Foundation gained prominence in 2020 as left-wing activists embraced the “defund the police” movement and contended Floyd’s death was racially motivated. But in the years following the violent unrest that rippled across the United States, the charity that was once the face of the BLM movement and pulled in a staggering $90 million has faced severe setbacks over what many tax experts have likened to an accounting and transparency nightmare.

The BLM charity saw a financial windfall after Floyd’s death, with 17 major corporations committing support of at least $100,000 each. The corporations, which include Amazon, Coca-Cola, Microsoft, and Airbnb, have been silent on BLM’s alleged self-dealing.

Financial Woes and Allegations of Fraud

Financial disclosures filed in 2022 paint a stark image of how the BLM charity hemorrhaged its investment accounts during the recent tax period by almost $10 million and posted a deficit of $8.5 million. These creeping cash woes didn’t stop the foundation from steering millions of dollars to family members and friends of its co-founder, Patrisse Cullors, who resigned in May 2021 after legal scrutiny stemming from her real estate purchases.

Among those purchases was a swanky $6 million Los Angeles mansion where Cullors threw parties. The National Legal and Policy Center, a conservative watchdog, later alleged in an April 2022 IRS complaint that the BLM charity could face criminal or civil penalties for illegally using the mansion for the benefit of Cullors.

All in all, the foundation received just $9.3 million during its fiscal year ending in June 2022, marking an 88% slide from a year before, tax forms show. The BLM charity and its ex-board secretary, Shalomyah Bowers, were accused in a September 2022 lawsuit by an entity called BLM Grassroots of fraudulently siphoning off $10 million from donors.

The state and federal inquiries cited came as a direct result of reporting from the Washington Examiner revealing that the foundation lacked shocking levels of transparency that raised ethical and legal red flags among lawyers and tax-exempt experts.

Ill-Prepared to Manage the Money

“They were ill-prepared to manage the money,” National Legal and Policy Center CEO Peter Flaherty told the Washington Examiner. His group filed two complaints last year with the attorneys general of California and Washington that accused the foundation of illegal fundraising. Both states warned the BLM charity in January 2022 that it must stop taking money from residents.

The struggles of the Black Lives Matter charity highlight the importance of transparency and accountability in charitable organizations. Donors must be vigilant in ensuring that their contributions are being used for the intended purpose and not being siphoned off for personal gain.

BLM Charity Under Fire for Financial Mismanagement

The Black Lives Matter (BLM) charity is facing scrutiny for its financial management after it failed to provide information about its 2020 finances. According to the Washington Examiner, the charity has continued fundraising despite being ordered to cease until it provides the necessary information.

“She called it ‘white guilt’ money. They never really used the money to develop a way to advance their mission. They sat on it and are fighting over it. It’s obvious that it’s self-dealing and self-enrichment.” – Flaherty

Watchdog CEO Flaherty has accused the charity of self-dealing and self-enrichment, and believes that they have violated their tax-exempt purpose. The charity claims that it is “working inside and outside of the system to heal the past, re-imagine the present, and invest in the future of Black Lives through policy change, investment in our communities, and commitment to arts and culture.”

The Cost of BLM-Affiliated Unrest

The BLM-affiliated unrest of 2020 resulted in up to $2 million in estimated property damage in 20 states from May 26 to June 8. The riots were the most expensive in U.S. history and proved to be financially fruitful for the BLM charity.

“The difference is that when the Red Cross or other large and established nonprofits receive tens of millions of dollars in donations very quickly, they are generally staffed with experienced and highly competent professionals who are operating within a functioning system of checks and balances and internal controls.” – Styron

However, the charity has been criticized for its lack of transparency and accountability in managing the funds. CharityWatch executive director Laurie Styron believes that the charity’s lack of experienced professionals and internal controls has led to one person making unilateral decisions about how millions of dollars are spent.

Businesses and Livelihoods Destroyed

Over 1,500 businesses in Minneapolis and nearby St. Paul were severely damaged and shuttered their doors forever. Many of the businesses that BLM protesters targeted in Georgia were minority-owned.

“But I also want to make the point that it was clear from the start, based on their manifesto, that this organization was a radical front group designed to line the pockets of their founders.” – Loeffler

Former Republican Georgia senator Kelly Loeffler believes that BLM is a radical front group designed to line the pockets of its founders. In the years after the unrest, Republican members of Congress and conservative advocacy groups have demanded investigations into BLM’s role in the violence that took place.

BLM may be the largest movement in U.S. history, but its financial mismanagement and lack of accountability have raised serious concerns about its true purpose and impact.

Engaging News from Washington Examiner

“Don’t you have insurance?” the person asked.

Did you hear about this shocking incident? The Black Lives Matter Global Network Foundation has been caught in a controversy and they are not responding to requests for comment. Stay tuned for updates on this developing story.

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