The national Black Lives Matter organization filed a lawsuit in California Superior Court in Los Angeles County, alleging that a prominent left-leaning dark money group mishandled and withheld $33 million in funds, as stated in a legal complaint.
The lawsuit, initiated by the Black Lives Matter Global Network Foundation on Monday, accuses the Tides Foundation of failing to fulfill its commitments and retaining control over donations intended for BLMGNF.
Tax documents reveal that the Tides Center, affiliated with the San Francisco-based Tides Foundation, has historically served as a fiscal sponsor for BLMGNF and receives support from influential Democratic donors such as George Soros and Bill Gates.
Lawyers representing BLMGNF stated in the complaint, “Tides has engaged in deceptive business practices and has operated in a quasi-banking capacity without appropriate regulatory oversight or licenses. This action highlights a critical regulatory discrepancy that allows Tides (a nonprofit entity) to manage assets without adequate safeguards totaling over $1.4 billion — surpassing the assets under management of many regulated community banks, which rigorously adhere to stringent financial safeguards.”
Black Lives Matter rose to prominence as a significant player in left-wing social justice and defund-the-police movements after the brutal murder of George Floyd. They garnered national support, attracting substantial financial donations amounting to tens of millions of dollars.
However, financial mishappenings began to emerge among the equal rights organization. The Washington Examiner covered the organization’s lack of financial transparency and ethical concerns. Both state and federal investigations went into full effect. In September 2022, BLM Grassroots accused the charity and its former board secretary, Shalomyah Bowers, of diverting $10 million in funds from supporters. However, the lawsuit was dismissed the following year.
Furthermore, co-founder Patrisse Cullors resigned from BLMGNF in 2021 amidst legal scrutiny surrounding her opulent real estate acquisitions, including a $6 million mansion in Los Angeles.
In the recent lawsuit, BLMGNF alleges that the Tides Foundation has withheld millions of dollars pledged to the organization. According to BLMGNF’s complaint, the Tides Foundation engaged in fraudulent activities by redirecting the funds elsewhere instead of transferring them to a “collective action fund” designated for BLMGNF’s use.
Responding to the allegations, the Tides Foundation issued a statement asserting that the accusations in the complaint are entirely untrue.
They stated: “Resources in the Black Lives Matter [collective action fund] were never intended to be granted to large, well-funded national organizations like Black Lives Matter Global Network Foundation, and were always intended to be granted to local Black Lives Matter chapters. BLMGNF’s lawsuit seeks to circumvent the intent of the Fund’s donors and deprive grassroots Black Lives Matter chapters critical resources, for its own benefit.”
Moreover, the Tides Foundation has found itself under more scrutiny recently with possible connections to affiliations supporting protest groups in the U.S. not in favor of Israel after its attack against Hamas.
The Black Lives Matter Global Network Foundation said in a statement: “There is an expectation for Black Lives Matter to challenge systems, break barriers and uphold the truth, no matter how uncomfortable. Today, that extends into nonprofit operations as we call out Tides Foundation and other so-called ‘fiscal sponsors’ who exploit their role.”
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