Statement on Federal Charges Against Southern Poverty law Center
Recently, the Southern Poverty Law Center (SPLC) was indicted on federal fraud charges including wire fraud, bank fraud, and conspiracy to commit money laundering, by the US Department of Justice (DOJ). The DOJ alleges that SPLC, which is a national 501(c)(3), defrauded their donors by secretly paying for inside information from leaders of hate groups. The organization has pushed back, claiming their approach saved lives and that the program has not operated for several years. SPLC has always been under immense political scrutiny, but for years has provided its data and research with law enforcement and the FBI that is now investigating them.
Since the indictment of SPLC, Fidelity, Vanguard, and Schwab all announced that their donor advised fund holders are blocked from donating to SPLC, even while their legal documents require that they alert donors to an indictment, not block donations altogether. Schwab’s announcement went further, saying that an investigation into a nonprofit will halt donations from its DAFs.
Forefront and our national partners are concerned about both the investigation into SPLC and the decision by investment firms to block donations while the investigation is ongoing. We fear this is an escalation of the recent trend of investigations into charitable organizations broadly, and more specifically, into specific organizations that have ideological differences with the current Administration. Forefront remains committed to the advancement of racial equity and civil rights in our state and nation, and we stand in solidarity with SPLC while they defend themselves against this investigation.
Related Resources
- U.S. Federal Jury Charges Against Southern Poverty Law Center
- Southern Poverty Law Center Response to Charges
- Associated Press of Charges
- National Council of Nonprofits on Charges
- Independent Sector on Charges
- The Nonprofit Alliance on Charges
- New York Times on Fidelity and Vanguard Decision
- New York Times on Schwab Decision
- Introduction to Donor Advised Funds
Previous Statement on Presidential Memorandum Targeting NPOs