BLACK LIVES MATTER GLOBAL NETWORK FOUNDATION, INC.

CONSOLIDATED FINANCIAL STATEMENTS

AND
INDEPENDENT AUDITORS REPORT
____________
Year Ended June 30, 2021
 TABLE OF CONTENTS

Description Pages

Independent Auditors Report 1–2

Consolidated Statement of Financial Position 3

Consolidated Statement of Activities 4

Consolidated Statement of Functional Expenses 5

Consolidated Statement of Cash Flows 6

Notes to Consolidated Financial Statements 7 – 14

 HCT Certified Public Accountants & Consultants, LLC

INDEPENDENT AUDITOR’S REPORT

To the Board of Trustees of

Black Lives Matter Global Network Foundation, Inc.

We have audited the accompanying consolidated financial statements of Black Lives Matter Global Network
Foundation, Inc. (a nonprofit organization) and affiliates, which comprise the consolidated statement of
financial position as of June 30, 2021, and the related consolidated statement of activities, functional
expenses, and cash flows for the year then ended, and the related notes to the consolidated financial
statements.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these consolidated financial
statements in accordance with accounting principles generally accepted in the United States of America;
this includes the design, implementation, and maintenance of internal control relevant to the preparation
and fair presentation of financial statements that are free from material misstatement, whether due to fraud
or error.

Auditor’s Responsibility

Our responsibility is to express an opinion on these consolidated financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America. Those standards require that we plan and perform the audit to obtain reasonable assurance about
whether the consolidated financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
consolidated financial statements. The procedures selected depend on the auditor’s judgment, including
the assessment of the risks of material misstatement of the consolidated financial statements, whether due
to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the
entity’s preparation and fair presentation of the consolidated financial statements in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on
the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also
includes evaluating the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluating the overall presentation of the
consolidated financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinion.

West Palm Beach Miami Hollywood

Phone (561) 655-2664 Phone (305) 331-8768 Phone (954) 966-4435
Opinion

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects,
the financial position of Black Lives Matter Global Network Foundation, Inc., and affiliates as of June 30,
2021, and the changes in their net assets and their cash flows for the year then ended in accordance with
accounting principles generally accepted in the United States of America.

Emphasis of Matter

The financial statements of Black Lives Matter Global Network Foundation as of June 30, 2021 was
originally issued on April 25, 2022. As discussed in Note 8 to the financial statements, the aforementioned
Note 8 has been updated. Our opinion is not modified with respect to this matter.

HCT Certified Public Accountants & Consultants, LLC

Hollywood, Florida
April 25, 2022, except as to the emphasis of matter paragraph, which is as of May 11, 2022.
 BLACK LIVES MATTER GLOBAL NETWORK FOUNDATION, INC.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
June 30, 2021
_____________

ASSETS
Current assets
Cash and cash equivalents $ 5,335,856
Accounts receivable 113,533
Prepaid expenses 316,590

Total current assets 5,765,979

Non-current assets
Property and equipment, net 5,923,811
Investments 32,000,114

Total non-current assets 37,923,925

Total assets $ 43,689,904

LIABILITIES AND NET ASSETS

Current liabilities
Accounts payable $ 223,093
Grants payable, current portion 1,045,817

Total current liabilities 1,268,910

Non-current liabilties
Grants payable, non-current portion 486,306

Total liabilities 1,755,216

Net assets
Without donor restrictions
Undesignated 41,934,688

Total liabilities and net assets $ 43,689,904

See notes to consolidated financial statements.

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 BLACK LIVES MATTER GLOBAL NETWORK FOUNDATION, INC.
CONSOLIDATED STATEMENT OF ACTIVITIES
Year Ended June 30, 2021
_____________

Without Donor With Donor

Restrictions Restrictions Total
Revenue and support
Revenue
Online store royalties $ 2,728,522 $ - $ 2,728,522
Net investment return 114 114
Other royalties 44,185 - 44,185

Total revenue 2,772,821 - 2,772,821

Support
Foundation grants 69,289,086 - 69,289,086
Individual and corporate contributions 7,511,916 71,000 7,582,916
Releases from restrictions 71,000 (71,000) -

Total support 76,872,002 - 76,872,002

Total revenue and support 79,644,823 - 79,644,823

Expenses
Program 33,039,667 - 33,039,667
Administration 3,760,600 - 3,760,600
Fundraising 909,868 - 909,868

Total expenses 37,710,135 - 37,710,135

Change in net assets 41,934,688 - 41,934,688

Net assets, beginning of year - - -

Net assets, end of year $ 41,934,688 $ - $ 41,934,688

See notes to consolidated financial statements.

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 BLACK LIVES MATTER GLOBAL NETWORK FOUNDATION, INC.
CONSOLIDATED STATEMENT OF FUNCTIONAL EXPENSES
Year Ended June 30, 2021
_____________

Arts & Healing Total Total

Culture Grassroots Justice Investment Think Tank Policy Program Administrative Fundraising Expenses

Salaries $ 13,158 $ 69,857 $ 68,670 $ 1,117 $ 461 $ 6,512 $ 159,775 $ 35,753 $ 4,400 $ 199,928
Benefits 3,022 16,042 15,770 256 106 1,495 36,691 8,210 1,010 45,911

Total salaries and benefits 16,180 85,899 84,440 1,373 567 8,007 196,466 43,963 5,410 245,839
Grants to other organizations - 13,097,626 12,900,319 - - - 25,997,945 - - 25,997,945
Consultants 487,815 78,800 52,200 210,600 87,000 1,044,000 1,960,415 608,561 829,925 3,398,901
Communications 158,639 821,160 807,206 13,125 5,422 76,545 1,882,097 420,258 51,721 2,354,076
Design and media 1,985,674 - - - - 134,245 2,119,919 10,000 - 2,129,919
Professional security expenses - - - - - - - 1,383,048 - 1,383,048
Tech support 66,603 353,597 347,588 5,652 2,335 32,961 808,736 180,967 22,271 1,011,974
Legal - - - - - - - 546,542 - 546,542
Other expense 4,430 - - - - 49,999 54,429 373,430 - 427,859
Depreciation - - - - - - - 74,970 - 74,970
Travel & meals - - - - - - - 68,440 - 68,440
Occupancy - - - - - - - 26,798 - 26,798
Liability insurance 1,619 8,596 8,450 137 57 801 19,660 4,400 541 24,601
Accounting - - - - - - - 10,294 - 10,294
Payroll service - - - - - - - 5,926 - 5,926
Membership & affiliations - - - - - - - 1,520 - 1,520
Banking charges and fees - - - - - - - 1,483 - 1,483

$ 2,720,960 $ 14,445,678 $ 14,200,203 $ 230,887 $ 95,381 $ 1,346,558 $ 33,039,667 $ 3,760,600 $ 909,868 $ 37,710,135

See notes to consolidated financial statements.

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 BLACK LIVES MATTER GLOBAL NETWORK FOUNDATION, INC.
CONSOLIDATED STATEMENT OF CASH FLOWS
Year Ended June 30, 2021
_____________

Cash flows from operating activities

Change in net assets $ 41,934,688

Adjustments to reconcile change in net assets to net cash

from (used for) operating activities
Depreciation and amortization 74,970
Present value discount on grants payable (101,210)

Changes in operating assets and liabilities

Accounts receivable, net (113,533)
Prepaid expenses and other assets (316,590)
Accounts payable 223,093
Grants payable 1,633,333

Net cash from operating activities 43,334,751

Cash flows from investing activities

Purchase of investments (32,000,114)
Purchase of building and land (5,998,781)

Cash used by investing activities (37,998,895)

Net increase in cash and cash equivalents 5,335,856

Cash and cash equivalents, beginning of year -

Cash and cash equivalents, end of year $ 5,335,856

See notes to consolidated financial statements.

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 BLACK LIVES MATTER GLOBAL NETWORK FOUNDATION, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Year Ended June 30, 2021
_____________

Note 1. Organization

The Black Lives Matter Global Network Foundation (BLMGNF) is a nonprofit organization dedicated to
organizing and continuing activist activities in the Black Lives Matter movement.

Vision – BLMGNF imagines a world where Black people across the diaspora thrive, experience joy, and
are not defined by their struggles. By achieving liberation, BLMGNF envisions a future that is fully divested
from police, prisons, and all punishment paradigms to be replaced with investment into justice, joy, and
culture.

Mission – BLMGNF is working inside and outside of the system to heal the past, re-imagine the present,
and invest in the future of Black lives through policy change, investment in our communities, and a
commitment to arts and culture.

Core Values – Working towards a world where Black people can thrive is embedded in BLMGNF’s
following core values:

• Joy – Black people aren’t just denouncing systemic violence and oppression. The Black experience
is more than death, protest, and pain. Black people resist white supremacy and still find a way to
laugh, love, and be a light in the world.

• Disruption – Black people aren’t begging for a seat at the table or asking for permission to create
change. Through self-determination, we’re building our own tables and investing in leaders to
create a feature that benefits Black people.

• Healing Justice – BLMGNF is healing the past so Black people can thrive in the future. Black
people cannot thrive unless they heal from racism and anti-Black racism.

• Respect – Black people are treated with respect and move with self-respect in a way that honors
those who came before us in the fight for liberation.

• Dignity – Black life is valued, and Black people are seen as multidimensional people who aren’t
defined by their struggles.

• Power – BLMGNF is building Black power in our communities so Black people can control and
define their own destinies.

Note 2. Summary of Significant Accounting Policies

Principles of Consolidation

The consolidated financial statements include the accounts of BLMGNF, and a single member LLC
owned by BLMGNF to hold real estate. All significant intercompany accounts and transactions have been
eliminated in consolidation. Unless otherwise noted, these consolidated entities are hereinafter referred to
as BLMGNF.

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 BLACK LIVES MATTER GLOBAL NETWORK FOUNDATION, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Year Ended June 30, 2021
_____________

Note 2. Summary of Significant Accounting Policies (Continued)

Basis of Presentation

The consolidated financial statements of BLMGNF have been prepared in accordance with accounting
principles generally accepted in the United States, which require BLMGNF to report information regarding
their consolidated financial position and consolidated activities according to the following net asset
classifications:

Net Assets Without Donor Restrictions – Net assets available for use in general operations and not
subject to donor- (or certain grantor-) imposed restrictions.

Net Assets With Donor Restrictions – Net assets subject to donor- (or certain grantor-) imposed
restrictions. Some donor-imposed restrictions are temporary in nature, such as those that will be met
by the passage of time or other events specified by the donor. Other donor-imposed restrictions are
perpetual in nature, where the donor stipulates that resources be maintained in perpetuity. All other
donor-restricted contributions are reported as increases in net assets with donor restrictions, depending
on the nature of the restrictions. When a restriction expires, net assets with donor restrictions are
reclassified to net assets without donor restrictions and reported in the statements of activities as net
assets released from restrictions.

Measure of Operations

The consolidated statement of activities reports all changes in net assets, including changes in net assets
from operating and non-operating activities. Operating activities consist of those items attributable to the
BLMGNF’s mission. Non-operating activities are limited to resources that generate returns considered to
be of a more unusual or nonrecurring nature.

Cash and Cash Equivalents

BLMGNF considers all cash and highly liquid financial instruments with original maturities of three months
or less, which are neither held for nor restricted by donors for long-term purposes, to be cash and cash
equivalents. Cash and highly liquid financial instruments restricted to building projects, investments, or
other long-term purposes are excluded from this definition. As of June 30, 2021, BLMGNF did not hold
any cash equivalents.

Promises to Give

BLMGNF records unconditional promises to give that are expected to be collected within one year at net
realizable value. Unconditional promises to give expected to be collected in future years are initially
recorded at fair value using present value techniques incorporating risk-adjusted discount rates designed to
reflect the assumptions market participants would use in pricing the asset. In subsequent years, amortization
of the discounts is included in contribution revenue in the statements of activities. BLMGNF determines
the allowance for uncollectable promises to give based on historical experience, an assessment of economic
conditions, and a review of subsequent collections. There were no promises to give recorded as of June 30,
2021.

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 BLACK LIVES MATTER GLOBAL NETWORK FOUNDATION, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Year Ended June 30, 2021
_____________

Note 2. Summary of Significant Accounting Policies (continued)

Marketplace Inventory

Inventory consists of program-related merchandise purchased by BLMGNF and held for sale in
BLMGNF’s online marketplace. Purchased inventory is stated at the lower of cost or market determined
by the first-in first-out method. As of June 30, 2021, there was no purchased inventory on hand.

BLMGNF’s online marketplace also sells program-related merchandise that is not purchased by BLMGNF.
BLMGNF receives a percentage of the proceeds of all sales of third-party merchandise sold in the online
marketplace.

Property and Equipment

BLMGNF records property and equipment additions over $5,000 at cost, or if donated, at fair value on the
date of donation. Depreciation and amortization are computed using the straight-line method over the
estimated useful lives of the assets ranging from 3 to 30 years. When assets are sold or otherwise disposed
of, the cost and related depreciation or amortization are removed from the accounts, and any resulting gain
or loss is included in the statements of activities. Costs of maintenance and repairs that do not improve or
extend the useful lives of the respective assets are expensed currently.

BLMGNF reviews the carrying values of property and equipment for impairment whenever events or
circumstances indicate that the carrying value of an asset may not be recoverable from the estimated future
cash flows expected to result from its use and eventual disposition. When considered impaired, an
impairment loss is recognized to the extent carrying value exceeds the fair value of the asset. There were
no indicators of asset impairment during the year ended June 30, 2021.

Investments

BLMGNF records investment purchases at cost, or if donated, at fair value on the date of donation.
Thereafter, investments are reported at their fair values in the statements of financial position. Net
investment return/(loss) is reported in the statements of activities and consists of interest and dividend
income, realized and unrealized capital gains and losses, less external and direct internal investment
expenses.

Revenue and Revenue Recognition

Marketplace sales are recognized at the time of purchase. Royalties from sales of third-party merchandise
are recognized at the time of purchase. All such sales are transferred at a point in time.

BLMGNF recognizes contributions when cash, securities or other assets, an unconditional promise to give,
or a notification of a beneficial interest is received. Conditional promises to give, that is, those with a
measurable performance or other barrier, and a right of return, are not recognized until the conditions on
which they depend have been substantially met.

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 BLACK LIVES MATTER GLOBAL NETWORK FOUNDATION, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Year Ended June 30, 2021
_____________

Note 2. Summary of Significant Accounting Policies (continued)

BLMGNF utilizes a third-party payment processor which charges a fee of approximately 4% for amounts
collected using its service. BLMGNF has reported contribution revenue in these consolidated financial
statements, net of approximately $300,000 of payment processor fees during the year ended June 30, 2021.

Donated Services and In-Kind Contributions

Volunteers contribute significant amounts of time to BLMGNF’s program services, administration, and
fundraising and development activities; however, the consolidated financial statements do not reflect the
value of these contributed services because they do not meet recognition criteria prescribed by generally
accepted accounting principles. Contributed goods are recorded at fair value at the date of donation.
BLMGNF records donated professional services at the respective fair values of the services received.

Advertising Costs

Advertising costs are expensed as incurred. Advertising costs were immaterial to the consolidated financial
statements during the year ended June 30, 2021.

Functional Allocation of Expenses

The costs of program and supporting services activities have been summarized on a functional basis in the
statements of activities. The statements of functional expenses present the natural classification detail of
expenses by function. Accordingly, certain costs have been allocated among the programs and supporting
services benefited.

Income Taxes

BLMGNF is organized as a nonprofit corporation and has been recognized by the IRS as exempt from
federal income taxes under IRC Section 501(a) as an organization described in IRC Section 501(c)(3),
qualifies for the charitable contribution deduction under IRC Section 170(b)(1)(A)(vi), and has been
determined not to be a private foundation under IRC Sections 509(a)(1). BLMGNF is annually required to
file a Return of Organization Exempt from Income Tax (Form 990) with the IRS. In addition, it is subject
to income tax on net income that is derived from business activities that are unrelated to its exempt purpose.
BLMGNF has determined that it is not subject to unrelated business income tax and has not filed an Exempt
Organization Business Income Tax Return (Form 990-T) with the IRS.

Estimates

The preparation of consolidated financial statements in conformity with generally accepted accounting
principles requires BLMGNF to make estimates and assumptions that affect the reported amounts of assets
and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and
expenses during the reporting period. Actual results could differ from those estimates, and those differences
could be material.

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 BLACK LIVES MATTER GLOBAL NETWORK FOUNDATION, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Year Ended June 30, 2021
_____________

Note 2. Summary of Significant Accounting Policies (continued)

Financial Instruments and Credit Risk

BLMGNF manages deposit concentration risk by placing cash with financial institutions believed by BLMGNF
to be creditworthy. Amounts on deposit usually exceed insured limits. To date, BLMGNF has not experienced
losses in any of these accounts.

Investments are made by diversified investment managers whose performance is monitored by BLMGNF and the
investment committee of the Board of Directors. Although the fair values of investments are subject to fluctuation
on a year-to-year basis, BLMGNF and the investment committee believe that the investment policies and
guidelines are prudent for the long-term welfare of the organizations.

Recent Accounting Guidance

In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), which requires lessees to recognize
leases on the balance sheet and disclose key information about leasing arrangements. The new standard establishes
a right-of-use (ROU) model that requires a lessee to recognize a ROU asset and lease liability on the statement of
financial position for most leases with a term longer than 12 months. Leases will be classified as finance or
operating, with classification affecting the pattern and classification of the expense recognition in the statement
of activities. The effective date for this standard has been delayed to annual reporting periods beginning after
December 15, 2021.

Currently, BLMGNF is not a party to any long-term lease agreements.

Note 3. Availability and Liquidity

Financial assets available for general expenditure, that is, without donor or other restrictions limiting their use,
within one year of the date of the statement of financial position, comprise the following:

Cash and cash equivalents $ 5,335,856

Accounts receivable 113,533
Investments 32,000,114
$ 37,449,503

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 BLACK LIVES MATTER GLOBAL NETWORK FOUNDATION, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Year Ended June 30, 2021
_____________

Note 4. Fair Value Measurements and Disclosures

BLMGNF reports certain assets and liabilities at fair value in the consolidated financial statements. Fair value is
the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction in the
principal, or most advantageous, market at the measurement date under current market conditions regardless of
whether that price is directly observable or estimated using another valuation technique. Inputs used to determine
fair value refer broadly to the assumptions that market participants would use in pricing the asset or liability,
including assumptions about risk. Inputs may be observable or unobservable. Observable inputs are inputs that
reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained
from sources independent of the reporting entity. Unobservable inputs are inputs that reflect the reporting entity’s
own assumptions about the assumptions market participants would use in pricing the asset or liability based on
the best information available. A three-tier hierarchy categorizes the inputs as follows:

Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities that BLMGNF can
access at the measurement date.

Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability,
either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets,
quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted
prices that are observable for the asset or liability, and market-corroborated inputs.

Level 3 – Unobservable inputs for the asset or liability. In these situations, BLMGNF develops inputs using
the best information available in the circumstances.

In some cases, the inputs used to measure the fair value of an asset, or a liability might be categorized within
different levels of the fair value hierarchy. In those cases, the fair value measurement is categorized in its entirety
in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement.
Assessing the significance of a particular input to entire measurement requires judgment, taking into account
factors specific to the asset or liability. The categorization of an asset within the hierarchy is based upon the pricing
transparency of the asset and does not necessarily correspond to BLMGNF’s assessment of the quality, risk, or
liquidity profile of the asset or liability.

The following table presents assets and liabilities measured at fair value on a recurring basis, except those
measured at cost or by using NAV per share as a practical expedient as identified in the following, at June 30,
2021.

Cash included in investments (at cost) $ 32,000,114

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 BLACK LIVES MATTER GLOBAL NETWORK FOUNDATION, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Year Ended June 30, 2021
_____________

Note 5. Property and Equipment

Property and equipment consist of the following at June 30, 2021:

Building $ 2,998,781
Land 3,000,000
Accumulated depreciation (74,970)

Property and equipment, net $ 5,923,811

Depreciation expense totaled $74,970 for the year ended June 30, 2021.

Note 6. Functional Expenses

The consolidated financial statements report certain categories of expenses that are attributed to more than one
program or supporting function. Therefore, expenses require allocation on a reasonable basis that is consistently
applied. The expenses that are allocated include salaries and wages, benefits, payroll taxes, communications,
information technology, and insurance, which are allocated on the basis of total costs allocated directly to program
and supporting functions.

Note 7. Employee Benefits

BLMGNF sponsors the Black Lives Matter Global Network Foundation Plan qualified under IRC Section 401(k)
covering substantially all full-time employees. The plan provides that employees eligible to participate on the first
day of the month following date of hire. Employees may voluntarily contribute their earnings to the Plan, up to
the maximum contribution allowed by the IRS. Employer contributions consist of safe harbor matching
contributions up to the first 6% of eligible compensation. During the year ended June 30, 2021, BLMGNF matched
employee voluntary contributions up to 6 percent, resulting in contributions to the plan of $7,808.

Note 8. Related Party Transactions

During the year ended June 30, 2021, BLMGNF entered into the following transactions with related parties:

• At June 30, 2021, BLMGNF recorded a receivable for travel and other expense reimbursements due
from the Executive Director totaling $73,523.
• A sibling of the Executive Director owned a security and protection company, which was paid
$840,993 for security services during the year ended June 30, 2021.
• A related party to the Executive Director of BLMGNF was a board member of M4BJ operating as
Black Lives Matter Canada, which was granted $8,024,626 during fiscal year ended June 30, 2021.
• BLMGNF received unconditional, unrestricted grants totalling $69,164,086 from Thousand Currents,
a 501(c)(3) organization which formerly acted as the fiscal sponsor of BLMGNF.

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 BLACK LIVES MATTER GLOBAL NETWORK FOUNDATION, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Year Ended June 30, 2021
_____________

Note 9. Subsequent Events

BLMGNF has evaluated subsequent events through April 25, 2022, except as to the emphasis of matter paragraph,
which is as of May 11, 2022, the date the consolidated financial statements were available to be issued. There
were no subsequent events that affected the amounts or disclosures in the financial statements.

The United States and global markets continue to experience significant volatility in value resulting from
uncertainty caused by the world-wide coronavirus pandemic. BLMGNF are closely monitoring BLMGNF’s
investment portfolio and its liquidity and are actively working to minimize the impact of this volatility.
BLMGNF’s consolidated financial statements do not include adjustments to fair value that have resulted from this
volatility.

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