The California attorney general warned Black Lives Matter Global Network the organization is at serious risk of losing its tax-exempt status if it does not provide financial disclosure documents to the state immediately.
Background: Last year BLM founder Patrisse Cullors stepped down from the organization triggering a scramble to find a new leader. Thus far, the organization has struggled to implement new leadership.
It wasn’t until late 2020 that BLM was registered as an official charity with the IRS.
Details: At the end of 2020, Black Lives Matter said in an impact report that it raised $90 million, spent $8.4 million in operating expenses, distributed $21.7 million in grants to 33 other organizations, and closed the year with a $60 million balance. (per Fox News)
What Happened: In a Jan. 31 letter to BLM California Attorney General Rob Bonta warned that the organization is at serious risk of losing its tax-exempt status.
Bonta warned in a letter to BLM that “the organization BLACK LIVES MATTER GLOBAL NETWORK FOUNDATION, INC. is delinquent with The Registry of Charitable Trusts for failing to submit required annual report(s).” for the 2020 tax year.
“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 published by the Washington Examiner continued.
What Comes Next: The organization will be able to regain good standing with The Registry of Charitable Trusts by paying a renewal fee and turning in its IRS 990 form detailing its financial activities. The organization will also have to submit a similar state-issued form.
If BLM fails to remedy its financial issues individual leaders will be held “personally liable for payment of all late fees” for “each month or partial month for which the reports are delinquent.”