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Black Lives Matter halts fundraising after liberal states threaten legal action over missing financial records

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Don & Melinda Crawford/Education Images/Universal Images Group via Getty Images

The liberal states of California and Washington have ordered the Black Lives Matter Global Network Foundation to halt all fundraising operations over a lack of financial transparency, according to a new report.

"We take these matters seriously and have taken immediate action," an unidentified spokesperson for the BLMGNF told the Washington Examiner. "We have immediately engaged compliance counsel to address any issues related to state fundraising compliance. In the interim, we have shut down online fundraising as we work quickly to ensure we are meeting all compliance requirements."

The outlet reported that the Black Lives Matter Global Network Foundation shut down all online fundraising on Wednesday night and noted that the "donation button that used to be featured prominently on BLM's website was nowhere to be found as of Wednesday evening."

After the foundation reportedly failed to submit an annual report for the 2020 tax year that is required of charitable trusts, California and Washington state officials prohibited the BLM organization from soliciting donations.

California Attorney General Rob Bonta (D) sent a formal delinquency notice to BLM on Monday, according to the New York Post. The order gives the group 60 days to file tax and charity documents for 2020; otherwise, BLM could lose its tax-exempt status and be subject to late fees.

“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)," the letter said.

"Accordingly, directors, trustees, officers and return preparers responsible for failure to timely file the above-described report(s) are personally liable for payment of all penalties, interest and other costs incurred to restore exempt status," the notice stated.

While the organization is delinquent, it is prohibited from any "solicitation or disbursing of charitable funds."

On Jan. 5, the Washington secretary of state corporations and charities division reportedly sent a notice to BLM to "immediately cease" fundraising in the state because of the group's lack of financial transparency.

"Please note that a violation of the Act is also a violation of the consumer Protection Act ... and could result in the imposition of injunctions and civil penalties of up to $2,000 per violation,” the official letter to BLM said, according to the Examiner. "Any organization that solicits and/or collects contributions in violation of the Act and CPA will be reported to the Office of the Attorney General’s Consumer Protection Division for further action.”

The outlet also reported, "BLM's charity registration is also out of compliance in Connecticut, Maine, Maryland, New Jersey, New Mexico, North Carolina, and Virginia."

When asked about the Black Lives Matter organization, Indiana Attorney General Todd Rokita (R) told the Examiner, "It appears that the house of cards may be falling, and this happens eventually with nearly every scam, scheme, or illegal enterprise. I see patterns that scams kind of universally take: failure to provide board members, failure to provide even executive directors, failure to make your filings available. It all leads to suspicion."

Rokita did not confirm or deny whether his office is investigating BLM.

Last week, a report questioned who controls the Black Lives Matter Global Network Foundation's $60 million war chest. The Examiner noted that the BLMGNF hasn't had an executive director since Patrisse Cullors resigned in May after weeks of criticism surrounding her purchase of high-end real estate properties.

Another report from last week alleged that the foundation helped fund the purchase of a mansion that was formerly the headquarters of the Communist Party of Canada.

In February 2021, BLMGNF released its disclosure – which stated the organization "raised just over $90 million" in 2020.

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