Fidelity and Vanguard’s charitable arms have reportedly paused grants to the Southern Poverty Law Center (SPLC) through their donor-advised funds after the group was indicted on federal charges.
The Justice Department last week charged the civil rights nonprofit with financial crimes, including wire fraud and money laundering. In the wake of the charges, many supporters moved to donate to help support the group’s legal defense, The New York Times reported.
However, both Fidelity Charitable and Vanguard Charitable said they are temporarily pausing grants to the organization while the case moves forward, according to the outlet.
AMERICANS SURGE TOWARD FINANCIAL RESOLUTIONS FOR 2026 AMID HOUSEHOLD BUDGET CONCERNS
“Fidelity Charitable is aware of an ongoing governmental investigation into Southern Poverty Law Center,” the company, an affiliate of Fidelity Investments, said in a message to a donor.
“Consistent with our grant-making standards and practices, the organization is not an eligible grant recipient during the ongoing investigation.”
Vanguard Charitable provided a similar explanation, according to The New York Times.
“The 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,” the company said when declining a grant request.
THE TYPICAL AMERICAN WORKER HAS JUST $955 SAVED FOR RETIREMENT, STUDY SHOWS
A donor-advised fund (DAF) lets people make a tax-deductible donation, then recommend how the money is given to charities over time, according to the IRS.
“Vanguard Charitable grants only to organizations that meet IRS eligibility requirements. If we become aware an organization has been charged with a crime by state or federal authorities, we pause grantmaking while the matter is pending,” a spokesperson for the company told FOX Business.
“All grant decisions are made based on the information available at the time of the grant recommendation.”
On its website, Fidelity Charitable notes that a grant recommendation may be declined if an organization is being investigated for “alleged illegal activities or non-charitable activities.”
RETIREES FACE STAGGERING 6-FIGURE HEALTH CARE BILL WHEN LEAVING THE WORKFORCE
The Justice Department indicted the SPLC on charges of wire fraud and conspiracy to commit concealment and money laundering, stemming from allegations that the civil rights organization funneled $3 million in donations to people linked to various violent extremist groups, including Unite the Right, the Ku Klux Klan and the Aryan Nations.
“The SPLC allegedly engaged in a massive fraud operation to deceive their donors, enrich themselves, and hide their deceptive operations from the public,” FBI Director Kash Patel said in a statement.
“They lied to their donors, vowing to dismantle violent extremist groups, and actually turned around and paid the leaders of these very extremist groups — even utilizing the funds to have these groups facilitate the commission of state and federal crimes,” Patel added.
The SPLC did not immediately respond to FOX Business’ request for comment.
Fox News Digital’s Elaine Mallon contributed to this report.
Read the full article here
