The Black Lives Matter Foundation is again under financial scrutiny, as it faces significant monetary deficits and potential bankruptcy threats.
The foundation, which has previously faced financial controversies, has been at the center of headlines due to its current deficit of $8,559,748.
Payments made to companies closely tied to BLM
This financial shortfall is particularly notable due to the payments made to companies tied closely to the organization, amounting to millions, as The New York Post reported.
The financial strain is a drastic decrease from the $42 million the organization retained post-expenses just last year.
BLM finances labeled as ‘incredibly shady’
Adam Coleman, a columnist for the New York Post, brought attention to the organization’s financial practices, branding them as “incredibly shady.” He even compared these monetary movements to the much-disputed transactions associated with Hunter Biden.
“Just as shady as Joe Biden’s son in Burisma,” Coleman commented. “The whole scenario echoes that situation. They are moving money between accounts and organizations, effectively channeling funds, possibly to family members or themselves. It all looks highly dubious.”
Publicly available tax documents display that the organization raised about $8.5 million but incurred expenses of around $17 million.
Funds allocated to companies owned by individuals with BLM ties
A substantial portion of these expenditures was allocated towards payments to companies owned by individuals closely associated with the organization.
This included a payment of $1.69 million to a company owned by Shalomyah Bowers “for management and consulting services.” Bowers stepped in as a replacement for the previous leader, Patrisse Cullors, who was embroiled in her own financial scandals.
Coleman underscored the potential impact of the organization’s financial mismanagement on the current fiscal crisis.
“They never had a plan. I honestly believe that Black Lives Matter had no idea they would receive such a surge of money,” Coleman stated.
‘They went from zero to 90 million’
“Examining their tax year before 2020, they had $0, so they went from zero to 90 million. For most people, if you win the lottery, many don’t know how to handle that.”
“So, assuming they’re not intentionally being underhanded but simply mismanaged the funds, none of this is surprising to me,” he added.
Donations to BLM plunge by nearly $70 million
The revelations of the foundation’s financial status come in the wake of reports that the donations to Black Lives Matter plunged by nearly $70 million for its fiscal year ending in June 2022, as per the Washington Free Beacon.
Despite the dip in donations, the organization reportedly still funneled millions into companies associated with the organization’s executives.
The foundation previously channeled nearly $4 million in consultation fees to Shalomyah Bowers, its current leader, and individuals connected to its co-founder Patrisse Cullors.
As per tax records, $2.1 million was directed towards Bowers Consulting, owned by Bowers, between July 2020 and June 2021.
Additionally, nearly $970,000 was transferred to Trap Heals LLC, founded by Damon Turner, the father of Cullors’ child. Another $840,000 was sent to Cullors Protection LLC, a security firm owned by Cullors’ brother.
BLM Foundation purchased Los Angeles mansion
The foundation also reportedly purchased a multi-million-dollar mansion in Los Angeles. This purchase sparked nationwide debate before Cullors resigned in May 2021.
“This is the dubious part. What is the money actually spent on? It was donated to left-leaning organizations that don’t directly benefit Black people but rather cater more to the LGBTQ+ community. There may be a fraction of the Black community affected by this, but the lack of checks and balances is evident,” Coleman remarked.
“It seems completely disorganized. They appear clueless about what they’re doing, and it’s clearly evident,” he concluded.