Black Lives Matter Global Network Foundation Inc. (BLMGNF) is suing its former partner, the Tides Foundation, claiming the fund has not delivered on more than $33 million in donations promised to the social activist group, the New York Post reported.
The 285-page lawsuit filed in Los Angeles County Superior Court on Monday stated that Tides “has engaged in deceptive business practices and has operated in a quasi-banking capacity without appropriate regulatory oversight or licenses.”
The Tides Foundation, a left-wing nonprofit founded in 1976, states their mission is to shift “power and resources to communities that have historically been denied both to unlock transformative change.” The complaint noted that Tides manages over $1.4 billion in assets, more than many regulated community banks, yet operates without safeguards.
In a statement to the Post, BLMGNF said it “never expected to become victims of … unscrupulous business practices” in its social justice movement.
“There is an expectation for Black Lives Matter to challenge systems, break barriers, and uphold the truth, no matter how uncomfortable,” the statement said. “Today, that extends into nonprofit operations as we call out Tides Foundation and other so-called ‘fiscal sponsors’ who exploit their role.”
The complaint stated that following the death of George Floyd in 2020, BLMGNF received tens of millions in donations and contacted Tides to help manage the influx of funds until they were able to obtain tax-exempt status from the IRS.
The lawsuit alleges Tides has refused to return the $33 million collected and instead has sent some of the funds to other BLM chapters without BLMGNF’s permission.
Tides denied the allegations saying in a statement.
“Resources in the Black Lives Matter Support 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,” the statement read.
“We are deeply disappointed that it has reached this stage, and that the actions of BLMGNF leaders continue to prevent us from granting funds to Black-led and Black-serving organizations that need it.
“We are confident we have done everything in our power to uphold our fiduciary commitment and responsibility to act in accordance with the intent of the fund.”
Earlier in the week, Politico reported that Tides, which is heavily funded by George Soros’ Open Society Foundation, has also been backing the pro-Palestinian protests that have roiled college campuses over the past two weeks.
Tides issued a statement to the outlet regarding their funding of the recent Columbia University protests saying it is “committed to advancing social justice,” adding its “community of fiscally sponsored projects, donors, and grantees represent a wide range of perspectives on what social justice looks like.”
James Morley III ✉
James Morley III is a writer with more than two decades of experience in entertainment, travel, technology, and science and nature.
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