Southern Poverty Law Center faces funding restrictions following DOJ indictment

The Southern Poverty Law Center (SPLC) is facing significant financial and legal challenges following an indictment by the U.S. Department of Justice on fraud charges. The legal proceedings have led to major philanthropic gatekeepers restricting the flow of donor funds to the organization.

Three major Wall Street-affiliated donor-advised fund (DAF) sponsors—Vanguard Charitable, Fidelity Charitable, and Charles Schwab’s DAFgiving360—have implemented policies that prevent donors from using their platforms to grant money to the SPLC. While donors advise these sponsors on where to direct funds, the sponsors retain legal control and can deny grant requests based on internal policy triggers.

As of 2024, DAF sponsors control more than $327 billion in assets, representing approximately one-quarter of all individual giving in the United States. Investigations into these nonprofit sponsors suggest a lack of transparency regarding how decisions to defund specific charities are made and how policies are applied inconsistently across different organizations.