Two of the country\u2019s largest sponsors of donor-advised funds have cut off the Southern Poverty Law Center.<\/p>\n
Last week, the Justice Department indicted<\/a> the civil rights nonprofit on charges of committing financial crimes. Many of the center\u2019s supporters immediately went online to donate money to help it fight the federal government.<\/p>\n But Fidelity Charitable told its customers, who have over 350,000 charitable giving accounts that allow them to maximize tax savings while giving money to eligible nonprofits, that they could not donate to the center through the accounts anymore.<\/p>\n \u201cFidelity Charitable is aware of an ongoing governmental investigation into Southern Poverty Law Center,\u201d according to an email it sent to a donor. \u201cConsistent with our grant-making standards and practices, the organization is not an eligible grant recipient during the ongoing investigation.\u201d Fidelity Charitable shares a parent company with Fidelity Investments.<\/p>\n Vanguard Charitable sent a similar message when denying a grant request: \u201cThe organization has had allegations and\/or charges brought against them for activities that may call into question their ability to carry out their tax-exempt charitable purpose.\u201d<\/p>\n Donor-advised funds<\/a> allow people to donate money \u2014 including appreciated investments \u2014 to a fund that resembles a personal mini-foundation and take a tax deduction that year.<\/p>\n You don\u2019t have to give the money away all at once. You can parcel it out over time, as long as the entity administering the donor-advised fund is willing to push that donation to the nonprofit recipient. Usually, this is a rubber-stamp approval process for legal nonprofits like the S.P.L.C.<\/p>\n But not always. Fidelity Charitable\u2019s program guidelines state that account holders\u2019 grant recommendations \u201care not binding and are subject to review and approval\u201d by Fidelity Charitable\u2019s trustees. A prudent trustee might choose to avoid many \u2014 or any \u2014 charities that are under investigation or indictment, even at the risk of offending an account holder.<\/p>\n A spokesman declined to answer questions about how the suspension was applied, aside from pointing to language on its website. There, it lists reasons that a grant recommendation \u201cmight\u201d be declined, including if an organization \u201cis being investigated for alleged illegal activities or noncharitable activities, such as terrorism, money laundering, hate crimes or fraud,\u201d or if \u201cother state and federal agencies\u201d are investigating a charitable organization.<\/p>\n In 2023, the S.P.L.C. criticized<\/a> Fidelity Charitable and other sponsors of donor-advised funds, including Vanguard, for acting as a \u201cconsistent and significant source of income for groups peddling a variety of hateful and extremist beliefs.\u201d It specifically mentioned white nationalist, hard right and anti-LGBTQ+ groups.<\/p>\n Updated\u00a0<\/p>\n April 29, 2026, 3:40 p.m. ET<\/p>\n In an email, a Vanguard Charitable spokeswoman said that it makes grants \u201conly to organizations that meet I.R.S. eligibility requirements. If we become aware an organization has been charged with a crime by state or federal authorities, we pause grant-making while the matter is pending.\u201d<\/p>\n Ray Madoff, a Boston College law school professor, said in an interview that it is noteworthy that the Fidelity and Vanguard funds acted before any legal or judicial process had played out. For instance, the S.P.L.C. hasn\u2019t lost its nonprofit status, even though it has been indicted.<\/p>\n \u201cIf you or I can still make an outright donation on our own, why can\u2019t the funds do so on our behalf?\u201d she said. \u201cMy answer is, if we can, then they can.\u201d<\/p>\n Elaine Kenig, the Vanguard Charitable spokeswoman, said in an interview that any criminal indictment from a federal or state entity would trigger a pause for any nonprofit. Vanguard Charitable doesn\u2019t attempt to evaluate the worth of the underlying charges, she said. <\/p>\n Any legal fight between the federal government and the S.P.L.C. is likely to go on for years. It\u2019s unclear if that would impede the S.P.L.C.\u2019s ability to carry out its tax-exempt charitable purpose as it plays out.<\/p>\n Neither Vanguard Charitable nor Fidelity Charitable would provide a list of other nonprofits that they have put on pause.<\/p>\n Daffy<\/a>, a start-up aiming to expand access to donor-advised funds, is continuing to allow people to donate to the S.P.L.C.<\/p>\n \u201cThe I.R.S. is the principal U.S. government agency responsible for determining which organizations qualify as federal tax-exempt organizations, and Daffy generally relies on the I.R.S.\u2019s determination,\u201d it said via an emailed statement. \u201cThe Southern Poverty Law Center remains in good standing with the I.R.S., so Daffy members can make donation recommendations to the organization.\u201d<\/p>\n In a recent \u201c60 Minutes\u201d interview, President Trump said<\/a>, without providing evidence, that the racist rally in \u201cCharlottesville was all funded\u201d by the S.P.L.C. \u201cIt was done to make me look bad,\u201d he added.<\/p>\n