A progressive non-profit, the Tides Foundation, is being sued by the Black Lives Matter Global Network Foundation for fraud and withholding more than $33 million in donations. The lawsuit alleges that Tides refused to honor its promises and continued to commandeer BLMGNF’s donations, providing some of the funds to a radical BLM breakaway group run by anti-police activist Melina Abdullah. Tides acts as a fiscal sponsor for various groups, including BLMGNF and pro-Palestinian organizations that support anti-Israel protests.
Tides, which has received significant funding from billionaire George Soros and his son Alex Soros, has been accused of engaging in deceptive business practices and operating in a quasi-banking capacity without proper regulatory oversight or licenses. The lawsuit claims that Tides has more than $1.4 billion in assets and acts as a bank without following banking regulations. BLMGNF, which took in tens of millions in donations after the death of George Floyd, approached Tides to help manage the funds, with the understanding that the money would be returned once BLMGNF received tax-exempt status.
Despite Tides’ verbal assurances that the collected funds would be accessible to BLMGNF in a collective action fund, the relationship ended in 2022, and Tides refused to hand over the $33 million in donations. Instead, Tides sent a portion of the funds to other BLM groups without permission. Tides denies the allegations in the lawsuit, stating that the funds were intended for local BLM chapters, not the BLMGNF.
The lawsuit against the Tides Foundation is not just about financial discrepancies but also about rightful ownership and transparency in social justice funding partnerships. BLMGNF is challenging systems and calling out organizations like Tides Foundation for exploiting their role. BLMGNF has previously faced financial issues, with co-founder Patrisse Cullors facing scrutiny for purchasing multiple properties after the group received $90 million in donations in 2020. Cullors resigned from BLMGNF amid controversy over her real estate purchases.
The lawsuit also references a frivolous lawsuit by Melina Abdullah’s breakaway group BLM Grassroots, in which Abdullah attempted to collect $10 million from BLMGNF. The lawsuit was dismissed, and Abdullah was ordered to pay legal fees and costs to BLMGNF. BLMGNF emphasizes the importance of transparency and the principle of rightful ownership in social justice funding partnerships. The organization did not anticipate becoming victims of unscrupulous business practices in social justice philanthropy and is calling for accountability from organizations like the Tides Foundation.
In conclusion, the lawsuit between the Tides Foundation and the Black Lives Matter Global Network Foundation highlights the challenges and controversies that can arise in the management and distribution of donations for social justice causes. It underscores the importance of transparency, integrity, and accountability in partnerships between non-profit organizations and fiscal sponsors. The case also sheds light on the complexities of fundraising, financial management, and governance within the social justice sector, and the need for clear guidelines and regulations to prevent misuse or misappropriation of funds. Ultimately, the lawsuit serves as a reminder of the critical role that oversight, ethical practices, and adherence to legal standards play in ensuring the effective and responsible allocation of resources for advocacy and activism.