Report: BLM At Risk Of Going Bankrupt, Hemorrhaged Cash In 2022

The Black Lives Matter (BLM) movement is currently going through financial difficulties, according to a recent report from the Washington Free Beacon. The report states that BLM’s main organization, the Global Network Foundation (GNF), recorded an $8.5 million deficit in 2022, with the value of its investment accounts plunging by nearly $10 million, causing it to be at risk of going bankrupt. This is a remarkable turn of events, considering that BLM raised $90 million in the summer of 2020 after the death of George Floyd, which prompted massive protests across the country.

The report also reveals that despite these financial difficulties, BLM continued to give out seven-figure salaries to its top executives. Additionally, several of the staff members hired by BLM were related to its founder, Patrisse Cullors. Cullors’ brother, Paul Cullors, had set up two companies which were paid $1.6 million for “professional security services” for BLM in 2022.

The revelation that BLM is in deep financial trouble has raised several questions. One of which is how did the organization hemorrhage so much cash in just one year? Another is, what impact could this have on the broader movement for social justice, particularly as BLM’s popularity soared following last year’s protests? These are all valid questions, and in this article, we will explore the answers and discuss the potential implications.

Origins of BLM and Its Rapid Growth

The Black Lives Matter movement originated in 2013 after the acquittal of George Zimmerman in the murder of Trayvon Martin. It began as a hashtag on social media and eventually turned into a nationwide movement fighting against police brutality and racial injustice against black people. BLM’s popularity grew exponentially after the murder of George Floyd in 2020. Millions of Americans came out in droves to protest his killing and call for systemic change in policing and other areas of the American society.

BLM’s impact wasn’t only limited to the United States. It resonated with people all over the world, particularly in countries with their own histories of police brutality and racial discrimination. The movement had become synonymous with the fight against racial injustice, and its message was heard loud and clear across continents.

Despite this vast popularity, BLM has had its fair share of controversies. Criticisms were leveled against the organization for its leadership structure, as it lacked a centralized body or hierarchy. This lack of structure made it difficult for critics to pin down the organization’s agenda and goals, leading to questions about where the donated funds were going and who was benefiting from them.

BLM’s Financial Troubles

According to the recent report from the Washington Free Beacon, BLM’s GNF is on the verge of being bankrupt. The report highlights the massive losses the organization suffered in 2022, including a deficit of $8.5 million and a decline of nearly $10 million in the value of its investment accounts. Additionally, BLM’s fundraising fell off significantly in 2022, with the organization only raising $9.3 million, an 88 percent decline from the previous year.

The report also exposes the exorbitant salaries paid to BLM’s top brass, with several staff members receiving seven-figure salaries. The organization’s financial problems only add to concerns surrounding its leadership, particularly as some of the salaries paid to its top executives were significantly higher than those paid to other civil rights organizations’ executives.

For example, Patrisse Cullors, the founder of BLM, earned $310,000 in 2020, according to tax filings. In comparison, the executive directors of the American Civil Liberties Union (ACLU) and the Southern Poverty Law Center (SPLC) earned $340,000 and $259,000, respectively. Additionally, BLM’s spending on luxuries, such as multi-million dollar properties in Los Angeles and Toronto, further raises concerns regarding its leadership and use of funds.

Impact of BLM’s Financial Troubles

The revelation of BLM’s financial difficulties has raised concerns among supporters and critics alike. On the one hand, supporters of the movement fear that this could potentially harm the broader social justice movement. BLM has become symbolic of the fight against police brutality and racial injustice, and its financial troubles could diminish its influence and momentum in advancing this cause.

On the other hand, critics of BLM see this as a vindication of their long-standing concerns about the organization’s leadership and agenda. They believe that the lack of structure and clarity in the organization’s goals has allowed its leaders to enrich themselves at the expense of the movement’s supporters. For them, BLM’s financial troubles serve as a warning to the broader social justice movement to be wary of organizations that operate without transparent leadership structures.

Conclusion

The Black Lives Matter movement’s financial troubles have highlighted the importance of transparency and clarity in leadership. The lack of these elements can lead to significant problems, including mismanagement of funds and a lack of clarity in an organization’s goals. BLM’s rapid rise to prominence has been remarkable, but its financial difficulties threaten to derail the momentum of the broader social justice movement. Hopefully, this serves as a lesson to other movements and organizations to prioritize transparency and accountability in their leadership, which is essential for the continued growth and success of any movement.