DOJ Indictment of SPLC on Wire Fraud Charges Draws Widespread Legal Condemnation

The Department of Justice’s April indictment of the Southern Poverty Law Center on wire fraud and money laundering charges has drawn condemnation from legal experts, who called the case legally stretched and vulnerable to dismissal. Prosecutors allege the SPLC defrauded donors by paying informants inside white supremacist groups between 2014 and 2023 — the same groups it publicly worked to dismantle. Legal scholars note the SPLC shared intelligence with the FBI, including advance warning about the 2017 Unite the Right rally. It marks the first time the administration has filed criminal charges against a nonprofit. Independent Sector called the indictment politically motivated and urged policymakers to protect civil society’s independence.

Sources: Nonprofit Quarterly

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Fidelity, Vanguard, and Schwab DAF Platforms Block Grants to SPLC Following Federal Indictment

Three of the country’s largest donor-advised fund platforms — Fidelity Charitable, Vanguard Charitable, and DAFgiving360 — blocked account holders from directing grants to the Southern Poverty Law Center following the DOJ’s April indictment, citing policies allowing them to pause donations to organizations under federal criminal charges. Democracy Fund President Joe Goldman called the move an active subsidy for the administration’s political campaign, noting that an indictment is an allegation, not a conviction. The San Francisco Foundation has invited DAF holders to transfer assets there, and a growing coalition of philanthropic leaders has called on donors to move funds away from platforms that enforce blanket donation blocks on politically targeted organizations.

Sources: Nonprofit Quarterly

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Trump Administration’s Use of Foreign-Agent Labels Against Nonprofits Echoes Authoritarian Playbook

Researchers from Protect Democracy warn that the Trump administration’s escalating use of “foreign agent” and “foreign terrorist” labels against nonprofits follows a documented authoritarian playbook deployed previously in Russia and Hungary. Writing in Nonprofit Quarterly, the authors document how congressional committees have hauled nonprofit leaders to testify about foreign influence, the DOJ has investigated the Open Society Foundations, and four European groups have been designated Foreign Terrorist Organizations over alleged antifa ties. With the 2026 midterms approaching, these tactics are likely to intensify against nonprofits engaged in voter mobilization. The parallel to Russia’s 2012 foreign agent law — used to shutter hundreds of civil society organizations — is explicit.

Sources: Nonprofit Quarterly

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Bipartisan Charity Parity Act Would Extend Tax-Free Giving to Workplace Retirement Accounts

Bipartisan legislation introduced in both chambers on May 13 would allow retirees to make tax-free charitable donations directly from 401(k), 403(b), and 457(b) retirement accounts — a benefit currently limited to individual retirement accounts. The Charity Parity Act, sponsored by Representatives Kelly (R-PA) and Beyer (D-VA) in the House and Senators Cramer (R-ND) and Coons (D-DE) in the Senate, would eliminate the IRA rollover requirement that has created bureaucratic friction for donors. The National Council of Nonprofits endorsed the bill, joined by the American Heart Association, United Way Worldwide, the Salvation Army, and Mental Health America. The House bill was referred to the Ways and Means Committee.

Sources: National Council of Nonprofits

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