Black Lives Matter at risk of bankruptcy due to rising debt

Concerns about Black Lives Matter's finances have been building for years. Photo: Stuart Villanueva/The Galveston County Daily News via AP

Black Lives Matter is at risk of bankruptcy after its debt soared to $8.5m (£6.8m) and some employees received seven-figure salaries .

Financial disclosures showed that investment accounts at BLM's Global Network Foundation (GNF) plummeted. nearly $10 million in the last tax year, according to the Washington Free Beacon.

In the face of mounting debt, BLM GNF continued to hire relatives and friends of its founder on seven-figure contracts. to the bills.

The brother of Paul, co-founder of BLM, Patrice Cullors, founded two companies that were paid $1.8 million to provide «professional security services» to the organization.

In addition, Mr. Mr Cullors also worked as 'Head of Security' at BLM with a salary of £126,000. He was hired despite not working in the field.

The 2021 tax returns also showed that BLM GNF awarded a company owned by Damon Turner, the father of Ms Cullors' child, nearly $970,000 for assistance. for «live production» and other «creative services.»

Ms. Kallors, who has been at the center of the global Black Lives Matter Foundation for six years, resigned in May 2021 out of anger over tool guides.

In an interview last year, she acknowledged that the foundation was ill-prepared to deal with the wave of support for the movement and huge windfall donations following the high-profile murder of George Floyd in 2020.

Her successor Shalomi Bowers' consulting firm received a solid a $1.7 million management and advisory fee.

“While Patrice Cullors was forced to step down amid allegations of using BLM funds for her personal needs, it looks like she still keeps it all in the family,” said Paul Kamenar, an attorney for the National Legal and Policy Center's watchdog group. Free Beacon.

Cashflow also fell sharply, with FY 2022 fundraising revenue down 88% from the previous 12 months to $9.3 million.

Concerns groups' finances have grown over the years.

The organization was forced to shut down its online fundraising streams in February 2022 due to transparency and compliance issues in several liberal states.

< p>The Washington Free Beacon said the group spent two-thirds of the money it raised after Mr. Floyd's death.

Last year, it was revealed that about $12 million of those funds were used to buy luxury homes in Toronto and Los Angeles. .

BLM said the $5.8 million Los Angeles mansion was meant to be a «safe place» for activists.

The organization said they were «working over transparency» after reports.