ActBlue is an online fundraising platform that is not explicitly related to the US Democratic Party, but which only funds left-leaning and progressive candidates and organizations. It’s a tech company. It earns money by functioning as this service, so yes, your donations help fund it. Organizations and candidates pay ActBlue a 3.95% processing fee for donations, but the rest of the money donated does go to the organization or specific candidate. ActBlue is also registered as a PAC (political action committee) which is a whole can of Political Worms I don’t want to open, but that means it has to report to the Federal Election Commission/the IRS which is a positive because it results in transparency of conduit funding. 

So...96.05% of the money you donate through the BLM website SHOULD go to the BLM Foundation. It does NOT go to the DNC.  The person who started this rumor (from a since-deleted Facebook post which led to a viral video) is a member of a Students for Trump organization, and other conservative pundits picked up on it and posted it. It just isn’t true, and has been debunked many times.

HOWEVER there’s still a problem. It’s hard to say where the money donated to the BLM site actually goes, and that issue is directly related to tax laws and nonprofit organization status in the US. There were questions and lawsuits about this earlier this year. There is an interesting loophole in ActBlue’s policy that states that “contributions...which are not cashed or affirmatively refused will be kept by ActBlue and used generally to support its social welfare activities”. In other words, ActBlue will keep money that is not cashed by the organizations within 60 days and use it to “generally support its social welfare activities”. No, I don’t know exactly what that means--it’s probably used by ActBlue for program costs, or is reallocated to its general fund (which gives grants to nominee funds, the Flip the Senate campaign, etc) but it does mean that money doesn’t go to those organizations, even if it was donated to them, if the organizations don’t claim it. Then, in a Reddit AMA in June, a BLM Foundation organizer provided less than satisfying information about where the money they fundraise goes. It’s difficult to find that info online thanks to the way nonprofits function within American tax law. 

It’s important to note here that the BLM Foundation and BLM Global Network are not necessarily associated with individual community activist organizations, protests, or the general BLM social movement. There’s plenty of discourse on this you can research on your own if you want. Google is free.

What’s important here is that the BLM Foundation operates as a nonprofit with a “parent” charity. From 2016 to this year BLM worked with Thousand Currents, which “fundraises grassroots groups led by women, youth and Indigenous Peoples”. In July they switched to a “working relationship” with TIDES, which is a “philanthropic partner and nonprofit accelerator dedicated to building a world of shared prosperity and social justice”. 

I’m not going to get into my personal feelings about large scale nonprofit organizations and the oxymoron of conscious capitalism (because organizations like this are essentially venture capitalists for nonprofits imo), but personally I think the larger and more decentralized the organization (or parent organization, in this case), the less effective your donation. More on that later. 

Essentially though, Thousand Currents and TIDES are organizations that focus on fundraising and infrastructure and then fund smaller grassroots groups that might not have the infrastructure or foothold to do that for themselves. This is not uncommon in the nonprofit world. I work for a nonprofit that ran though a university foundation and an established local nonprofit for ten years before we got our 501(c)(3) designation and started functioning independently. It’s not abnormal that the BLM Foundation works with an organization like that, given BLM is pretty decentralized by design and is also a fairly new organization (2013/2014). 

Thousand Currents and TIDES have 501(c)(3) tax exempt status. It can be difficult for smaller and newer nonprofits (as well as nonprofits that function outside of the US but which rely on donations from the US or other countries outside of where they’re headquartered) to gain that status, so they often work under a larger organization. 501(c)(3) status means financial records have to be made public, which means anyone can access the financial records for Thousand Currents and TIDES. You can also find tax filings for the BLM Foundation, but it’s less comprehensive (the most recent I could find was Form 990 from 2017, but maybe I’m not looking in the right place). Anyone can request tax documents from 501(c)(3) nonprofits.

This is getting complicated, right? Welcome to American tax law and nonprofit organizational hierarchies functioning under late stage capitalism. i’m not trying to throw the BLM Foundation under the bus here, because honestly this is just how it goes with a lot of organizations in the US. I don’t think it means you shouldn’t support them. But it gets pretty twisted up. Maybe you made a $20 donation to BLM back in July and now you’re wondering where the hell it went. Here’s the pipeline: your donation goes through ActBlue (which takes 3.95%, or .79 cents of your donation) to TIDES, which then directs that money to BLM. They know how much money is coming to them for BLM because ActBlue differentiates fundraising campaigns--the BLM money going to Thousand Currents or TIDES is separated from the funds coming to them for, say, CLIMA or the Farm to School Network . However, Thousand Currents and TIDES probably take a cut to support their operating costs, too. I couldn’t find data on this, so this is conjecture and I’m not sure how much--this statement is just based on knowing how nonprofits and fundraising usually work. 

So, the money stream from you to BLM is like this: You------> ActBlue (takes a 3.95% cut) ------> Thousand Currents or TIDES (probably takes a cut, then directs the money to)------>  BLM -----> Whatever BLM uses it for. Despite that strange loophole in ActBlue’s policy, Thousand Currents appeared to be claiming the donations and directing them to BLM (as of 2018...will be interesting to see tax stats from this year since their move to TIDES after unprecedented donations). 

BLM does have a huge grassroots organizing fund that began this June in response to overwhelming donations following the murder of George Floyd. The fund provides grants up to $500,000 to smaller grassroots organizations and activists, as well as educational curriculum and political platforms. Their grant campaign is supported by TIDES, which provides the infrastructure and tax-exempt funding conduit needed for such a large scale effort. I’m guessing most of the money they’re fundraising goes to that fund. A chunk definitely goes to paying employees, running their website, and funding outreach and education. 

So ALL THAT BEING SAID, I would always say donate directly to bail funds, mutual aid funds, legal fee funds, and local activism organizations before donating to a larger, all-encompassing charity or organization. If you can Venmo someone you know and you know where that money goes, that’s always the best. 

Venmo accounts, gofundme campaigns, cashapp accounts, paypal accounts...that’s often what smaller scale organizations and activists are using on a local level and it’s generally collected and distributed more directly. The BIPOC and COVID mutual aid funds where I live are active on Facebook and Instagram and operate based on requests for help from community members that are posted on Google documents available to the public. Here is a good example of a grassroots COVID mutual aid fund that is directing A LOT of money locally and transparently--there are similar funds and organizations like this worldwide for COVID, BLM, and beyond. 

The biggest impact you can make always comes at the community level--you should do some research into figuring out what’s going on in your area. There’s almost always something nearby, even if you live in a rural area or smaller town like I do, and if there’s not, hey--you could start something! Engage in your community and put your money into that, or into other communities in need. Pay attention to stuff going around on Twitter and Instagram--a lot of community organizing is facilitated there. 

I included the BLM link in the original post because the website is a good place to learn about actions around the globe, organizing basics, and has a lot of up to date news and educational materials. I advocated for donating to bail funds, mutual aid funds, water projects, and local activist organizations and I stand by that. I’m not saying you shouldn’t donate to the BLM Global Network or other larger-scale foundations, but the conduit of money to cause is usually not as direct. I still don’t think it’s a bad thing to donate to them.

But ALSO don’t spread straight-up misinformation like this ask does. ActBlue is a fundraising platform and it’s not stealing the money you send to BLM and giving it to Biden or the DNC. It’s a whole lot more complicated than that, and this is a great way to dissuade people from donating money to progressive organizations who use ActBlue because it’s an easy, accessible online fundraising platform. Funny how right-wing pundits latched onto this so quickly, huh?

Feel free to correct me or add more info. I’m white and operating within US-centric organizing circles. But PLEASE give some sources if you do have corrections or arguments and PLEASE do a google search before you spread stuff like this. 

_______________________________________________________________________