Fidelity and Vanguard halt SPLC grants amid federal charges: report

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.

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The Southern Poverty Law Center headquarters in Montgomery, Ala., where Fidelity and Vanguard have reportedly paused grants to the organization. (Barry Lewis/InPictures via Getty Images, File / Getty Images)

“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.

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Vanguard’s charitable arms has reportedly paused grants to the Southern Poverty Law Center. (Gabby Jones/Bloomberg via Getty Images, File / Getty Images)

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.”

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The U.S. Department of Justice seal on a podium in Washington, D.C., on Thursday, Aug. 5, 2021.  (Samuel Corum/Bloomberg via Getty Images / Getty Images)

The Justice Department indicted the SPLC on charges of wire fraud and conspiracy to commit concealment and money laundering, stemming from allegations…