BLM Charity Faces Insolvency Risk Amid Questionable Spending

Black Lives Matter (BLM) is facing potential insolvency as its debt reaches $8.5 million. 

The BLM Global Network Foundation (GNF) revealed a significant drop of nearly $10 million in its investment accounts during the most recent tax year, according to financial disclosures obtained by The Washington Free Beacon.

The financial difficulties come amid revelations that BLM GNF continued to hire relatives and associates of its founder, Patrisse Cullors, on lucrative contracts. Cullors’ brother, Paul, launched two companies that were paid a total of $1.6 million for providing “professional security services” to the organization. Furthermore, despite lacking relevant experience, Paul Cullors was employed as the “head of security” at BLM with a salary of $126,000 — on top of the consultancy fees he was already receiving.

Tax records from 2021 also showed that the charity awarded nearly $970,000 to a company owned by Damon Turner, the father of Cullors’ child, for assisting with “live event production” and other creative services.

The financial mismanagement and questionable allocation of funds led to significant backlash and ultimately forced Cullors to resign from her role in May 2021. Cullors admitted that the foundation was ill-prepared to handle the massive influx of donations following the high-profile killing of George Floyd in 2020.

BLM GNF’s financial woes are further compounded by a steep decline in cash flow, with fundraising earnings dropping by 88 percent in the 2022 fiscal year compared to the previous 12 months, amounting to $9.3 million.

Concerns about the organization’s finances have been mounting for some time. BLM had to suspend its online fundraising streams in February 2022 because of compliance and transparency issues in a number of states. It has been reported that the group has already spent two-thirds of the money it raised following George Floyd’s death.

Notably, reports emerged last year that around $12 million of BLM’s funds were used to purchase luxury homes in Toronto and Los Angeles. BLM claimed that the $5.8 million Los Angeles mansion was intended to serve as a “safe space” for activists.

Information for this story was found via Free Beacon, The Telegraph, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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