The leaders of Black Lives Matter could be held personally liable if they fail to disclose financial records about the charity’s $60 million in donations within the next 60 days.
In a letter issued to BLM on Monday, the California Department of Justice accused the charity of failing to submit its annual financial reports and alleged it was in delinquent status.
‘An organization that is delinquent, suspended or revoked is not in good standing and is prohibited from engaging in conduct for which registration is required, including soliciting or disbursing charitable funds,’ the letter reads.
The DOJ requested a copy of BLM’s annual registration renewal fee report and its 2020 IRS tax forms within two months time.
If the organization fails to submit these documents, its charity exemption status will be revoked. It could also face fines for ‘each month or partial month for which the report(s) are delinquent.’
The letter, which was obtained by the Washington Examiner, threatened that ‘directors, trustees, officers and return preparers’ would be ‘personally liable’ for ‘all penalties, interest and other costs incurred to restore exempt status’. The DOJ notes that ‘charitable assets cannot be used to pay these avoidable costs’.
The notice comes just days after it was revealed that BLM has not had anyone in charge of its finances since co-founder Patrisse Cullors resigned last May.
It is not clear who is currently in charge of the activist group after all three of its founding members – Cullors, Alicia Garza and Opal Tometi – left the organization.
Black Lives Matters leaders could be held personally liable if they fail to disclose financial records about the charity’s $60 million in donations within the next 60 days (Pictured left to right: Alicia Garza, Patrisse Cullors, and Opal Tometi in 2016)
Cullors, 38, stepped down as executive director of the Black Lives Matter Global Network (BLMGN) last year amid scrutiny of her $3.2 million property empire.
The scrutiny into BLMGN’s also finances comes after it was reported that the group transferred $6.3 million to Cullors spouse, Janaya Khan, and other Canadian activists to purchase a mansion in Toronto in 2001.
In a letter dated Monday, California AG Rob Bonta (pictured) requested a copy of BLM’s annual registration renewal fee report and its 2020 IRS tax forms within two months time
California’s warning follows an order from Washington state instructing BLM to ‘immediately cease’ fundraising in the state due to its ‘lack of financial transparency’.
However, the Washington Examiner alleges BLM continues to solicit and receive contributions from Washington state residents despite the order.
The National Legal and Policy Center, a conservative watchdog group, is reportedly preparing to file a complaint against the charity.
‘The National Legal and Policy Center will be filing a formal complaint with the Attorneys General of Washington and California to impose the maximum penalties on BLMGNF for their flagrant and repeated violations of the charity disclosure laws in those states and it seems in many others,’ attorney Paul Kamenar told the newspaper Tuesday.
The watchdog group’s complaint comes as charity auditors have expressed alarm at the management of BLM’s $60 million in donations, after it emerged that people announced as leading the organization never took up the role, and no one seemed able to say who was handling the finances.
In a letter issued to BLM Monday, the California Department of Justice also accused the charity of failing to submit its annual financial reports and alleged it was in delinquent status
The most recent tax filing for the charity, from 2019, gives an address in Los Angeles that does not exist, and the two remaining BLM directors identified by The Washington Examiner were not able to assist – with one even scrubbing BLM associations from his social media after he was contacted by the paper.
They are yet to file a 2020 return, a Form 990, as required – which could see BLM fined by the IRS.
Laurie Styron, executive director of CharityWatch, said the findings were deeply troubling, and said they should have filed their 2020 form by now.
‘Like a giant ghost ship full of treasure drifting in the night with no captain, no discernible crew, and no clear direction,’ she said.
Kamenar told the paper a full audit was needed, describing the situation as ‘grossly irregular’.
Expert allege the problem began in earnest in May 2021, when Cullors stepped down as director of BLMGN, the national body representing all the individual local chapters.
Cullors co-founded BLM in July 2013, after a Florida jury acquitted George Zimmerman in the killing of 17-year-old Trayvon Martin.
Alicia Garza, an Oakland activist, posted what she called a love letter to black people on Facebook, writing, ‘Our lives matter.’ Cullors, a friend of Garza, replied with the hashtag #BlackLivesMatter.
New York activist Opal Tometi then used the words while building a digital network of community organizers and antiracism activists.
Garza (center) and Tometi (left) are no longer affiliated with BLM. Cullors (right) was its figurehead and leader throughout the George Floyd protests in 2020 – which saw huge donations flood in
Garza and Tometi are no longer affiliated with the network, and Cullors was its figurehead and leader throughout the George Floyd protests – which saw huge donations flood in.
The organization’s finances had been managed by a group called Thousand Currents, which says it has a ‘mission of supporting grassroots movements pushing for a more just and equitable world.’
In the summer of 2020, leaders sought nonprofit status with the IRS, which was granted in December 2020 – allowing the organization to receive tax-deductible donations directly. The designation requires the foundation to file public 990 forms, revealing details of its organizational structure, employee compensation, programming and expenses.
READ RELATED: The Charges Against Elizabeth Holmes Explained
Patrisse Cullors (pictured) co-founded BLM in July 2013. In September 2020, Cullors signed documents with Thousand Currents transferring $66.5 million into BLM’s accounts.. She left BLM in May 2021
In September 2020, Cullors signed documents with Thousand Currents transferring $66.5 million into BLM’s accounts.
In February 2021, Black Lives Matter confirmed it took in $90 million throughout 2020, distributed to their partner organizations, and had $60 million remaining in its accounts.
In its report, a snapshot of which was shared with AP, the BLM foundation said individual donations via its main fundraising platform averaged at $30.76 each.
More than 10 percent of the donations were recurring.
The report does not state who gave the money in 2020, and leaders declined to name prominent donors.
Expenses were approximately $8.4 million — that includes staffing, operating and administrative costs, along with activities such as civic engagement, rapid response and crisis intervention.
BLM said at the time that they were sharing the details in a bid to be more transparent – admitting that their structure and finances had previously been opaque.
But two months later, in April 2021, reports began emerging – provided by the National Legal and Policy Center – which showed Cullors had amassed a $3.2 million property empire.
Cullors bought this house in South Los Angeles – one of four she owns
The activist also bought a home in Conyers, Georgia
Cullors now owns three properties in Los Angeles – including this one in the hills above the city
She also owns the above home, which is located in Topanga Canyon
Cullors owned four properties – three in the Los Angeles area and one outside of Atlanta – the researchers found.
Many within BLM turned against Cullors, questioning where she had accumulated the money. Cullors has written two books, has a deal with YouTube, and signed a production deal with Warner Bros. in 2020 to develop programming ‘for children, young adults and families.’
However, amid the furor she stood down and announced that two people were taking over as executive directors – Makani Themba and Monifa Bandele.
Yet Themba and Bandele in September said that they had never taken up the roles, following disagreements with leadership.
‘Although a media advisory was released indicating that we were tapped to play the role of senior co-executives at BLMGN, we were not able to come to an agreement with the acting Leadership Council about our scope of work and authority,’ they said in a statement.
‘As a result, we did not have the opportunity to serve in this capacity.’
Themba and Bandele said they did not know who was now running BLM, as their discussions never progressed.
Two other people remained on the board, after Cullors’ departure – Shalomyah Bowers and Raymond Howard, according to undated documents obtained by The Washington Examiner.
Makani Themba (left) and Monifa Bandele were announced as directors of BLM in May 2021, but never agreed to the terms and never took the job
Demonstrators protest in May 2020 response to the death of George Floyd
Protesters demonstrate on June 2, 2020, during a Black Lives Matter protest in New York City
Bowers served as the treasurer for multiple activist organizations run by Cullors, The Washington Examiner reported, including BLM PAC and a Los Angeles-based jail reform group that paid Cullors $20,000 a month and spent nearly $26,000 on ‘meetings’ at a luxury Malibu beach resort in 2019.
Bowers has not commented on the current status of the $60 million in the BLM coffers.
Howard also refused to comment when asked by the paper, and has since updated his LinkedIn page to remove references to his work with ‘an international social justice organization’.
Meanwhile, Cullors has been tied to even more charities whose finances raise ‘red flags’ after the organization donated hundreds of thousands to the nonprofits which then made payments to Cullors and her business partners, according to a new report on the organization’s spending.
Cullors, 38, who stepped down as executive director of the Black Lives Matter Global Network last year amid scrutiny of her $3.2 million property empire, had designated some of the $90 million the nonprofit made in 2020 to prison reform charities.
One of the groups, Reform LA Jails that Cullors founded, had received $1.4 million, of which $205,000 went to the consulting firm owned by Cullors and her spouse, Janaya Khan, New York Magazine reported.
Reform LA Jails then gave $270,000 to Christman Bowers, treasurer of the Black Lives Matter PAC; $211,000 to Asha Bandelle, a friend of Cullors’ who co-wrote her memoir; and another $86,000 to Trap Heals LLC, an entertainment, clothing and consulting company started by Damon Turner, the father of Cullor’s child.
Source:
