Even when contributions dropped by almost 90%, the racial advocacy organization boosted managerial expenses.
Black Lives Matter’s asset base is decreasing as a result of rising management expenses and declining contributions to the activist organization, which is spending money at a pace that is twice as fast as it is bringing in money.
In its most recent fiscal year, which concluded on June 30, donations to BLM’s Global Network Foundation plummeted to less than $9.3 million, a startling 88% decrease from the prior 12 months, according to state tax documents. Due to investment losses, revenue was much lower at $8.5 million, and the organization spent almost $17 million, or twice as much as it earned.
The papers, which the Washington Free Beacon first received, demonstrate that the cash windfall that BLM had during its 2020 marches against police brutality is already evaporating. The most recent fiscal year had a 28% decline in net assets, which fell to $30.2 million.
One of the issues is that the foundation is spending much more on administration even as it scales down its operations (expenses for “program services” fell 65% from a year earlier to $11.5 million). These expenses increased by 36% to $5.1 million last year.
Also charged with stealing funds for their own benefit are the group’s leaders. Shalomyah Bowers, the head of the foundation, allegedly stole $10 million for his personal use, according to a complaint filed by a sibling group, Black Lives Matter Grassroots. After being accused of living a luxurious lifestyle off of BLM’s money, his predecessor and co-founder Patrisse Cullors resigned in May 2021. She allegedly spent $3.2 million on four residences while leading the organization.
The Cullors family is still getting money from BLM. According to the records, her brother Paul Cullors, a graffiti artist, was paid $140,000 in his capacity as “head of security” for the previous year. More than $750,000 was also paid to his security company. The foundation paid a business run by Damon Turner, the father of Patrisse Cullors’ child, approximately $970,000 for “live production, design, and media” services, according to documents from the prior fiscal year.
According to an assessment of the group’s accounts by auditors, Bowers’ firm received close to $1.7 million in payments over the previous two years for “management and consulting services.”
At least in part to assist with organizing the group’s finances, Cicley Gay was appointed chairperson of the BLM foundation in April 2022. She apparently struggled to manage her own money, declaring for bankruptcy three times between 2005 and 2016 to shield herself from creditors.
After George Zimmerman was found not guilty in 2013, Cullors and two other activists founded the BLM movement. Zimmerman had murdered black teenager Trayvon Martin in a fight in February 2012 while working as a neighborhood watchman in Sanford, Florida.
After the police shooting of black Minneapolis resident George Floyd ignited a wave of demonstrations throughout the nation and abroad, BLM amassed contributions from Microsoft, Amazon, and other businesses in the summer of 2020. Cullors called the massive inflow of funds “white guilt money.” Many of the protests turned into riots, which resulted in thousands of casualties among Americans as well as billions of dollars’ worth of property damage.
