Index: bp-groups/bp-groups-functions.php
===================================================================
--- bp-groups/bp-groups-functions.php	(revision 5835)
+++ bp-groups/bp-groups-functions.php	(working copy)
@@ -721,7 +721,7 @@
 
 function groups_demote_member( $user_id, $group_id ) {
 
-	if ( ! bp_is_item_admin() || ! bp_is_item_mod() )
+	if ( ! bp_is_item_admin() )
 		return false;
 
 	$member = new BP_Groups_Member( $user_id, $group_id );