The Black Lives Matter Global Network Foundation (BLMGNF) has filed a $33 million lawsuit against Tides Foundation, a prominent progressive non-profit, accusing it of fraud and withholding tens of millions of dollars in donations intended for the civil rights group, according to a bombshell lawsuit first reported by the New York Post.
"There is an expectation for Black Lives Matter to challenge systems, break barriers, and uphold the truth, no matter how uncomfortable," BLMGNF said in a statement to the Post. "Today, that extends into non-profit operations as we call out Tides Foundation and other so-called 'fiscal sponsors' who exploit their role."
The 285-page complaint, filed Monday in the California Superior Court, Los Angeles County, alleges that Tides Foundation has "refused to honor its promises and continues to commandeer BLMGNF's donations."
According to the lawsuit, Tides doled out an undisclosed amount of the donations to a radical BLM breakaway group run by anti-police activist Melina Abdullah, who had previously lost a "frivolous" $10 million lawsuit against BLMGNF. This was first reported by the New York Post. "This lawsuit against the Tides Foundation is not just about financial discrepancies but the principle of rightful ownership and transparency that should govern partnerships in social justice funding," attorney Byron McLain told the Post on behalf of BLMGNF.
Tides Foundation, founded in 1976, acts as a fiscal sponsor, collecting donations for groups that may not have tax-exempt status. It manages funds for BLMGNF, other Black Lives Matter groups, as well as pro-Palestinian organizations that have supported anti-Israel protests nationwide.
The lawsuit states that Tides, which has over $1.4 billion in assets, has been operating in a "quasi-banking capacity without appropriate regulatory oversight or licenses." It alleges that after the murder of George Floyd in 2020 sparked nationwide protests, BLMGNF received tens of millions in donations and approached Tides to temporarily manage the funds until obtaining tax-exempt status from the IRS.
However, Tides has refused to return the $33 million collected, the complaint says, despite verbal assurances that it would do so once BLMGNF received tax-exempt status. Instead, it has sent part of the funds to other BLM groups without BLMGNF's permission, including $4.75 million to an unaffiliated chapter in Oklahoma City, according to the New York Post's exclusive reporting.
In a statement to the Post, an attorney for BLMGNF said Tides was not authorized to distribute donations meant for BLMGNF to other groups or local chapters. The lawsuit comes after BLMGNF faced its own financial controversies in 2020 and 2021. As first revealed by the New York Post, co-founder Patrisse Cullors reportedly went on a multi-million dollar real estate buying spree after the group took in over $90 million in donations in 2020 alone. Cullors purchased properties in Los Angeles, Georgia and Toronto, including a $6 million LA mansion intended as a BLMGNF office space, before resigning in May 2021.
Video: PM Netanyahu speaks during the Holocaust Remembrance Day on May 5, 2024
