Fidelity Charitable and Vanguard Charitable, two of the nation’s largest sponsors of donor-advised funds, have stopped allowing donations to the Southern Poverty Law Center (SLPC) after a federal indictment accusing the organization of fraud.
The decision blocks more than 350,000 Fidelity Charitable account holders from directing tax-advantaged donations to the SPLC while a Justice Department investigation remains open. A federal grand jury in Alabama last week indicted the SPLC, alleging the group raised millions of dollars from donors while secretly funneling more than $3 million to the extremist groups it publicly opposed, including the Ku Klux Klan and other white supremacist organizations.
>> Southern Poverty Law Center indicted for allegedly funding white supremacist groups <<
Fidelity Charitable, the country’s largest donor-advised fund sponsor, notified some donors by email that the SPLC is “not an eligible grant recipient during the ongoing investigation,” according to The New York Times. Fidelity Charitable cited its grant-making standards, which allow it to pause support for groups under government investigation for alleged illegal activities.
Vanguard Charitable sent similar notifications to donors, stating that allegations and charges against SPLC raised questions about its ability to carry out its tax-exempt charitable purpose.
Donor-advised funds let individuals contribute money or appreciated assets, claim a tax deduction, and then recommend grants to charities over time. The funds are sponsored by financial firms but operate as independent 501(c)(3) public charities.
SLPC’s HateWatch Data Lab has publicly scrutinized Fidelity, Vanguard, and other donor-advised fund sponsors, saying they can “act as a consistent and significant source of income for groups peddling a variety of hateful and extremist beliefs.” The group specifically cited what it called “Extremist, Hard-Right Fundraising.”
Many Christian and conservative commentators have long decried SPLC’s claimed status as a watchdog against “hate,” often citing the fact that the controversial group has regularly labeled mainstream public figures and institutions as “extreme.”
CatholicVote Director of Government Affairs Tom McClusky welcomed the recent indictment against SPLC, recalling that its tactics have been tied to acts of extremism on the political left.
As Zeale News reported shortly after the indictment, “Family Research Council (FRC), a conservative think tank and advocacy organization, said a gunman attacked its office more than 10 years ago due to SPLC’s narrative. In a statement on the indictment, President Tony Perkins said the violence FRC experienced indicates that SPLC’s actions have serious implications.”
McClusky agreed. “SPLC from the beginning has only cared about two things: raising money and silencing Christians,” he told Zeale News April 29. “Hopefully this is just the beginning of organizations, donors, and governments from distancing themselves from this hate group.”