Black Lives Matter has become the source of another controversy as tax documents show that its leaders were paid nearly $9 million despite the group's massive deficit.
The group also paid large amounts to outside groups for a variety of consulting services.
BLM paid execs millions despite being nearly $9M in the red, tax documents show https://t.co/FE6vx6JeL0
— Fox News (@FoxNews) May 24, 2023
"The Black Lives Matter Global Network Foundation ended the financial year with a deficit of $8,559,748 while still paying companies owned by people close to the organization millions, a number that represents a staggering decline from the $42 million it banked last year after expenses, The New York Post reported Wednesday," Fox News reported.
"Tax documents posted online show the group raked in about $8.5 million, but spent roughly $17 million on expenses. A large chunk of the money was spent making payments to companies owned by individuals close to the group, including $1.69 million "for management and consulting services" paid to a company owned by Shalomyah Bowers, who replaced embattled former leader Patrisse Cullors amid financial scandals of her own," it added.
Black Lives Matter risks going bankrupt https://t.co/1APSuL8qXt pic.twitter.com/cNX4lDuwY9
— Newsweek (@Newsweek) May 24, 2023
Brian Mittendorf, a professor of accounting at Ohio State University, told Newsweek that the "financials indicate spending down some of the windfall the organization received in the previous fiscal year.
"This does not necessarily mean the organization is headed toward insolvency. However, if their revenues continue as they are after the windfall from 2020-2021, they cannot maintain the spending level from 2022 indefinitely, so the organization would need to shrink its spending footprint to be sustainable."
The BLM organization raised about $90 million in 2020 following racial protests after the death of George Floyd at the hands of a Minneapolis police officer.
The director stepped down in 2021 over accusations related to her personal wealth despite denying claims of any wrongdoing.
The latest report shows that the organization continues to struggle following its rapid initial growth.
The tax documents also bring forth many questions over the payments of its top leaders and outside groups as it struggles to cover expenses.
