Fidelity and Vanguard Charities have reportedly put a hold on their grants to the Southern Poverty Law Center (SPLC) while it faces federal charges.
Last week, the Justice Department charged the civil rights organization with financial crimes that include wire fraud and money laundering. As a result, many supporters have begun donating to help fund the group’s legal defense.
In response to these developments, Fidelity and Vanguard announced they are temporarily suspending grants to the SPLC during the legal proceedings. This decision, according to reports, aligns with their respective grantmaking policies.
Fidelity Charities acknowledged awareness of the ongoing investigation in a message to its donors, noting that, under their standards, the SPLC is currently ineligible for grant funding. Similarly, Vanguard Charities issued a statement citing the charges against SPLC as detrimental to its ability to fulfill its charitable mission.
The IRS defines donor-advised funds (DAFs) as a means for individuals to make tax-deductible donations while guiding how those funds should be distributed long-term for charitable purposes. Both Fidelity and Vanguard reaffirmed that they only provide grants to organizations that satisfy IRS eligibility criteria.
The SPLC is facing serious allegations of misusing donations, including a charge of funneling $3 million to individuals connected with extremist groups such as the United Right, Ku Klux Klan, and Aryan Nations.
FBI Director Kash Patel described the situation as a substantial fraud operation where the SPLC purportedly deceived its donors and benefitted from illicit activities while misleading the public.
The SPLC has yet to respond to requests for comment on these accusations.
