The Black Lives Matter Global Network Foundation (BLMGNF) is currently involved in a lawsuit against the Tides Foundation, alleging mismanagement and withholding of over $33 million in funds. This legal battle stems from the complexities of their financial relationship since it began in 2013, particularly heightened by the influx of donations following George Floyd's death in 2020.
1. Lawsuit Claims: BLMGNF accuses Tides Foundation of "deceptive business practices" and "egregious mismanagement" of their funds. They seek the return of the withheld money.
2. Ongoing Investigation Request: Alongside the lawsuit, BLMGNF has requested the California Attorney General's office to investigate Tides Foundation for their alleged operational missteps.
3. Financial Management Issues: According to BLMGNF's lawyer, Lawrence Segal, Tides allegedly spent over $6 million of BLM's donations during the lawsuit, despite promises to refrain from using these funds. Segal contends that Tides may have used BLM's contributions to fund their own legal defense against the civil rights group.
4. Complicated Financial Structure: The lawsuit highlights that Tides Foundation manages over $1.4 billion in donations from various nonprofits but does not segregate funds. This lack of transparency complicates the monitoring of individual contributions, such as those from BLM.
5. Historical Context: BLMGNF partnered with Tides Foundation for fiscal sponsorship due to its initial lack of tax-exempt status. The relationship grew complicated after BLM received a substantial $90 million in donations in the wake of George Floyd's murder.
6. Criticism of BLM's Financial Decisions: BLMGNF has faced criticism for their handling of the $90 million received, disbursing only $30 million for charity and spending large amounts on salaries and investments.
7. Leadership Controversies: Co-founder Patrisse Cullors resigned amidst scrutiny over a personal real estate acquisition spree, although she asserted that BLM funds were not used for those purchases.
8. Legislative Action Against Tides: The Tides Foundation’s practices have drawn attention from Congress, with Rep. Jason Smith advocating for the revocation of their tax-exempt status due to their alleged involvement in funding groups that incite anti-Israel protests.
9. Forthcoming Trial: The trial for the case is scheduled for August 2026, highlighting the protracted nature of this dispute.
The lawsuit filed by the Black Lives Matter Global Network Foundation against Tides Foundation raises significant concerns about the management and transparency of charitable funds. With allegations of misappropriation and poor financial oversight, both organizations are under public scrutiny. The complexities of their relationship, particularly in light of massive donations during heightened social movements, illustrate the challenges nonprofits face in managing fiscal sponsorships and donor trust. A resolution is pending as the legal battle unfolds, with implications for both the BLM and Tides Foundation going forward.
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