– Rising economies, start-ups, and Black wealth, etc.
BLM Foundation Chucks Up $42 Million Worth Of Assets
The foundation started by organizers of the Black Lives Matter movement is still worth tens of millions of dollars, after spending more than $37 million on grants, real estate, consultants, and other expenses, according to tax documents filed with the IRS.
In a new, 63-page Form 990 shared exclusively with The Associated Press, the Black Lives Matter Global Network Foundation Inc. reports that it invested $32 million in stocks from the $90 million it received as donations amid racial justice protests in 2020. That investment is expected to become an endowment to ensure the foundation’s work continues in the future, organizers say.
It ended its last fiscal year – from July 1, 2020 to June 30, 2021 – with nearly $42 million in net assets. The foundation had an operating budget of about $4 million, according to a board member.
The tax filing shows that nearly $6 million was spent on a Los Angeles-area compound. The Studio City property, which includes a home with six bedrooms and bathrooms, a swimming pool, a soundstage and office space, was intended as a campus for a Black artists fellowship and is currently used for that purpose, the board member said.
This is the BLM foundation’s first public accounting of its finances since incorporating in 2017. As a fledgling nonprofit, it had been under the fiscal sponsorship of a well-established charity, and wasn’t required to publicly disclose its financials until it became an independent, 501(c)(3) nonprofit in December 2020.
The tax filing suggests the organization is still finding its footing: It currently has no executive director or in-house staff. Nonprofit experts tell the AP that the BLM foundation seems to be operating like a scrappy organization with far fewer resources, although some say Black-led charities face unfair scrutiny in an overwhelmingly white and wealthy philanthropic landscape.
Still, its governance structure makes it difficult to disprove allegations of impropriety, financial mismanagement and deviation from mission that have dogged the BLM foundation for years, one expert said.
“It comes across as an early startup nonprofit, without substantial governance structure in place, that got a huge windfall,” said Brian Mittendorf, a professor of accounting at Ohio State University who focuses on nonprofit organizations and their financial statements.
“People are going to be quick to assume that mismatch reflects intent,” he added. “Whether there’s anything improper here, that is another question. But whether they set themselves up for being criticized, I think that certainly is the case because they didn’t plug a bunch of those gaps.”
The BLM movement first emerged in 2013, after the acquittal of George Zimmerman, the neighborhood watch volunteer who killed 17-year-old Trayvon Martin in Florida. But it was the 2014 death of Michael Brown at the hands of police in Ferguson, Missouri, that made the slogan “Black lives matter” a rallying cry for progressives and a favorite target of derision for conservatives.
BLM co-founders Patrisse Cullors, Alicia Garza and Ayọ Tometi had pledged to build a decentralized organization governed by the consensus of BLM chapters. But just three years into existence, Cullors was the only movement founder involved in the organization.
And in 2020, a tidal wave of contributions in the aftermath of protests over George Floyd’s murder by Minneapolis police meant the BLM organization needed much more infrastructure.
When Cullors revealed the windfall of donations last year, local chapter organizers and families of police brutality victims reacted angrily. Until then, the foundation had not been transparent with the most devoted BLM organizers, many of whom accused Cullors of shutting them out of decisions about how financial resources would be allocated.
YahNé Ndgo, an activist and former organizer with the BLM chapter in Philadelphia, said Cullors reneged on a promise to hand over control of the foundation’s resources to grassroots organizers.
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