Samwise Nonprofits and Charities Newsletter
Friday, May 8, 2026
Southern Poverty Law Center Pleads Not Guilty to Federal Fraud Charges
The Southern Poverty Law Center entered a not-guilty plea in federal court in Montgomery, Alabama on May 7, 2026, after the Trump Justice Department indicted the civil rights nonprofit on 11 counts of wire fraud, bank fraud, and money laundering conspiracy. Interim President and CEO Bryan Fair appeared on behalf of the SPLC, accused of funneling more than $3 million to paid informants inside extremist groups between 2014 and 2023 without disclosing the payments to donors. Lowell signaled the group may seek dismissal on grounds of “vindictive prosecution.” Trial is set for October 2026. Former federal prosecutors have called such charges against nonprofits without federal funding involvement highly unusual.
Sources: Alabama Reporter
Community Foundations Condemn Fidelity and Vanguard for Freezing SPLC Donor Grants
Community foundation leaders issued sharp rebukes on May 7, 2026 after Fidelity Charitable, Vanguard Charitable, and DAFGiving360 announced they would freeze donor-directed grants to the Southern Poverty Law Center following its federal indictment. Fred Blackwell, CEO of the San Francisco Foundation, called the move philanthropic “malpractice,” warning that allowing commercial financial platforms to pre-empt the legal system sets a dangerous precedent for nonprofit independence. Leaders of the Cambridge Community Foundation and Brooklyn Org joined the criticism, urging donors to route charitable dollars through mission-aligned community foundations. No finding of wrongdoing against the SPLC has been made; its trial is set for October 2026.
Sources: The Chronicle of Philanthropy
Ted Turner, Who Pledged $1 Billion to the UN and Reshaped Mega-Philanthropy, Dies at 87
Ted Turner, the media mogul who founded CNN, died May 6, 2026 at his home in Lamont, Florida at age 87. His 1997 pledge of $1 billion to the United Nations Foundation—then the largest individual philanthropic gift in history—challenged fellow billionaires to match his generosity and helped normalize nine-figure charitable commitments. He signed the Giving Pledge and distributed the majority of his fortune during his lifetime. The Turner Foundation, launched in 1990 with a $2.5 million donation, has since distributed roughly $400 million in environmental grants. UN Secretary-General António Guterres described Turner as “a tireless champion for our common humanity.”
Sources: UN News
Legal Scholars: SPLC Indictment Breaks Prosecutorial Norms and May Lack Evidence
Nonprofit Quarterly published an analysis on May 6, 2026 arguing that the Trump administration’s indictment of the Southern Poverty Law Center breaks with established prosecutorial norms and may face significant legal obstacles. The piece notes that federal authorities have rarely brought fraud charges against nonprofits when no federal funding was involved—a key distinguishing feature of the SPLC case. The Justice Department alleges the SPLC defrauded donors by using contributions to fund paid informants inside extremist groups, while the SPLC maintains those payments helped prevent violence and were shared with the FBI. Legal experts contend the government may struggle to prove material misrepresentation under applicable fraud statutes.
Sources: Nonprofit Quarterly
Nonprofit Quarterly Essay Calls on Foundations to Divest from Systems of Violence
A May 6, 2026 essay in Nonprofit Quarterly calls on foundations to audit and divest investment portfolios from industries the authors characterize as sustaining systems of violence—including private prison companies, border surveillance firms, and fossil fuel interests. The piece highlights that major foundations continue to hold equity stakes in corporations such as GEO Group, CoreCivic, and Palantir through index fund exposure, even while publicly espousing racial equity. Authors argue that divestment must move from stated principle to binding investment policy, with specific language in investment policy statements and regular third-party audits. The article positions divestment as an extension of philanthropic accountability requiring direct board governance oversight.
Sources: Nonprofit Quarterly
Renaissance Philanthropy Mobilizes $533 Million in Two Years for Science and Innovation
Renaissance Philanthropy disclosed on May 6, 2026 that it has mobilized more than $533 million in funding within its first two years, across 22 programs and five government partnerships. The nonprofit connects philanthropists with science and technology researchers through time-bound, thesis-driven funds led by domain experts, allowing donors to support high-risk research without building in-house teams. Of the total, $265 million has been deployed to third-party organizations while $268 million funds Renaissance-managed programs in areas including AI-enabled science, climate intervention, energy innovation, and global health. Supporters say the model fills a gap between traditional academic grant-making and venture-style investment, targeting breakthroughs that conventional institutional funders tend to avoid.
Sources: Tech.eu
Curated by JD · samwise.agency