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What legal fundraising channels do Black Lives Matter chapters use and how are funds allocated?
Executive summary
Black Lives Matter chapters and affiliated organizations raise money through a mix of formal nonprofit vehicles, third‑party fundraising platforms, corporate and fashion donations, and local grassroots appeals; the Black Lives Matter Global Network Foundation (BLMGNF) has reported distributing millions in grants — for example, committing $21.7 million in grant funding to chapters and local Black‑led groups and reporting roughly $90 million in revenue in a year referenced by the AP [1][2]. Reporting also documents confusion and mistaken donations to similarly named groups, and persistent controversies about transparency and allocation [3][1].
1. Fundraising channels: formal nonprofit entities and fiscal sponsors
Chapters and the broader movement have used formal nonprofit structures to accept tax‑deductible donations: the Black Lives Matter Global Network Foundation operates as a 501(c)[4] fundraising and grantmaking entity and has at times been fiscally sponsored by other charities or used fiscal sponsors previously [5][2]. The Movement for Black Lives (M4BL) likewise operates an independent nonprofit that coordinates campaign and electoral work, demonstrating the use of formal organizational vehicles within the ecosystem [6].
2. Online fundraising platforms and payment processors
BLM‑related entities have used mainstream fundraising platforms and processors to collect donations; ActBlue (commonly used by progressive causes) and other third‑party platforms have been used to process gifts, and platforms clarify that donations are earmarked for the group listed on the form rather than rerouted automatically to political parties [7]. Misrouting or confusion has occurred when soundalike or unaffiliated groups were listed in databases used by platforms, producing mistaken corporate and individual donations [3].
3. Corporate, brand, and fashion‑industry gifts
Large and small companies and designers have publicly pledged or donated to local BLM chapters, bail funds, and allied organizations; coverage cites examples such as donations from Savage x Fenty and pledges from brands like Ganni and Glossier supporting Black Lives Matter chapters and related groups [8]. Built In’s review of companies supporting BLM notes corporate commitments of millions to Black‑led causes and funds tied to racial equity work [9].
4. Grassroots, chapter‑level fundraising and funds networked locally
Local chapters and affiliated bail funds or community organizations raised funds through direct grassroots appeals, Action Network fundraisers, Carrd pages and other DIY approaches that directed money to local bail funds, legal support, and mutual aid [10][11]. These grassroots channels are decentralized and vary widely in formality, legal standing and reporting.
5. How funds have been allocated — grantmaking and local support
The BLMGNF publicly reported making major grant commitments: a snapshot shared with AP showed roughly $90 million in intake for one year and a commitment of $21.7 million in grant funding to official and unofficial chapters and 30 Black‑led local organizations; the foundation also reported giving over $35 million since 2020 to 70 organizations and distributing microgrants and scholarships via funds like Student Solidarity and a pandemic Survival Fund [1][12][13]. Those allocations reportedly included a mix of chapter support, program grants, scholarships and community services.
6. Transparency disputes, governance questions, and mistaken donations
Multiple reports document disputes over transparency and governance: chapter leaders publicly demanded greater financial transparency from the national foundation, and nonprofit reviewers raised concerns about governance practices such as documented board meetings and policies [5][2]. Separately, a soundalike organization — the “Black Lives Matter Foundation” unrelated to the movement — collected corporate and individual donations by mistake, prompting platforms and media to try to redirect funds and clarifying the separation between groups [3].
7. Legal and practical implications for donors and chapters
Because channels range from registered 501(c)[4] foundations to informal local funds, the legal status of the recipient matters for tax deductibility and reporting; ActBlue and similar processors say donations go to the group listed on the form, but the ecosystem’s similarity of names can produce confusion and unintended routing unless donors verify the legal recipient [7][3]. Chapters that operate without formal nonprofit status may rely on fiscal sponsors to accept larger grants, which changes who legally holds and reports the funds [5].
8. What’s not covered or remains uncertain in current reporting
Available sources do not detail standardized, chapter‑by‑chapter budget breakdowns for how every donation dollar was spent; specific line‑item allocations across all chapters are not published in the cited reporting (not found in current reporting). Likewise, while federal and state probes and allegations have appeared in reporting, the provided sources do not comprehensively document final legal findings or outcomes for all investigations [14][2].
Context and competing perspectives: reporting from AP and the BLM organizations emphasize large‑scale giving and commitments to grants and community programs [1][12], while watchdog, chapter statements and press accounts raise concerns about governance, transparency and mistaken donations that complicate public understanding [5][3]. Donors and researchers should verify the legal recipient, examine publicly posted financial statements or impact reports, and consider whether a recipient is a national foundation, a fiscal sponsor, or a local grassroots entity before giving [7][2].