Connect with us

Politics

JUST IN: BLM Organization Headed For Bankruptcy After Racking Up Massive Deficit

Published

1 year ago

on

It appears that the Black Lives Matter (BLM) organization is teetering on the brink of financial collapse.

The once-heralded group seen as a beacon of social justice by many on the left is now facing bankruptcy due to a massive financial deficit. According to its tax return obtained by the Washington Free Beacon, Black Lives Matter experienced substantial financial losses and investment downturns in 2022.

In its most recent tax year, the organization saw an $8.5 million deficit, and the value of its investment accounts dropped by about $10 million. One transaction resulted in a 85% loss, or $961,000, on a securities sale of $172,000.

Despite these financial issues, the organization continued to give large contracts to close associates and relatives of its former executive director, Patrisse Cullors. These financial challenges appear to be leading the organization toward insolvency.

The BLM organization, founded in 2013 following the acquittal of Trayvon Martin’s killer, quickly became one of the most prominent entities in the United States pushing for social justice. However, it seems that the organization’s lofty ambitions have been overshadowed by a severe lack of financial prudence.

The organization’s financial challenges have arisen after a number of other setbacks, including a significant decrease in fundraising from the previous year, with the organization raising just $9.3 million in its 2022 fiscal year, a decrease of 88% from the previous year.

The organization also had to cease its online fundraising in February 2022 due to compliance and transparency issues.

free hat

Much of the funds raised were spent on luxury homes in Los Angeles and Toronto, and a significant amount was paid to contractors linked to Cullors’s friends and family. Cullors’s brother, Paul, and his companies were paid $1.6 million for providing security services for the organization. Other associates and family members also received large consulting fees from the organization.

Paul Kamenar, an attorney for a watchdog group, commented, “While Patrisse Cullors was forced to resign due to charges of using BLM’s funds for her personal use, it looks like she’s still keeping it all in the family.”

Critics have accused the organization of mismanagement and misuse of funds, and there are currently multiple investigations by the Internal Revenue Service and various state attorneys general.

The allegations of financial mismanagement led to the resignation of Patrisse Cullors, but critics argue that the 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 consultant in the nonprofit sector, taking the helm of the board of directors.

It’s noteworthy that Gay has a financial history marked by three Chapter 7 bankruptcy filings since 2005.

REACTIONS:



Related Topics: