Black Lives Matter has stopped all fundraising operations in an apparent step toward getting professional assistance in determining the status of the far-left advocacy group’s operations. Deep blue states California and Washington ordered the Black Lives Matter Global Network Foundation (BLM) to cease collection of donations, and an unidentified BLM spokesperson said that the group has “taken immediate action.”
The spokesperson added that BLM had engaged compliance counsel to address state filings and record keeping.
BLM had reportedly closed all online fundraising pages by late Wednesday, and the donation button usually displayed across its website had been removed.
The actions taken by California and Washington were related to BLM’s reported failure for the 2020 tax year to submit legally required annual reports that are required of charitable nonprofits.
California’s Democratic Attorney General Rob Bonta issued BLM a delinquency notice at the beginning of the week. That notice advises the group to file the required documents within 60 days. If BLM fails to comply, it could lose its tax-exempt status in California and incur fees. Those penalties and other costs, plus interest, could be personally imposed on BLM’s directors and officers.
The California notice also advised that BLM is prohibited from “soliciting or disbursing” funds while it is delinquent.
The Washington Secretary of State sent a similar notice to BLM on January 5, ordering it to halt fundraising in the state because of its delinquency immediately. That notice also told the organization that violations of the order are also violations of the state’s Consumer Protection Act. Violations of that law can lead to injunctions and civil fines of up to $2,000 per violation. Violators can also be prosecuted by the Washington Attorney General’s Consumer Protection Division.
BLM is also reportedly non-compliant with reporting obligations in seven other states.
Indiana’s Republican Attorney General Todd Rokita told the Washington Examiner that the BLM “house of cards may be falling.” He said that he has found problems of this type nearly always eventually turn up with “scams, schemes, or illegal enterprises.”
Reports surfaced last week that no apparent person or group was controlling BLM’s $60 million charitable funds. BLM has not had a publicly recognized executive director since Patrisse Cullors last May. Her resignation came as she was dealing with inquiries about purchasing several pieces of high-end luxury real estate.