Attorney General Kwame Raoul and a coalition of 15 attorneys general urged several large donor-advised charitable fund sponsors on May 22 to reevaluate their decisions to stop payments to the Southern Poverty Law Center (SPLC) following an indictment by the Department of Justice.
The letter from the attorneys general raises concerns that penalizing nonprofit organizations, such as the SPLC, for exercising their First Amendment rights could cause harm. The coalition warns that actions taken in response to politically motivated prosecutions may suppress organizations working on civil rights and democracy.
Raoul said, “The Trump administration has a well-documented pattern of using the power of the federal government to target the president’s perceived political enemies and those who hold opinions or enact policies that are unfavorable to this administration. These retribution campaigns are made even more effective when private sector organizations capitulate and are willing to contribute to the harm. I join my colleagues in calling on donor-advised charitable funds to stand up to this unlawful bullying by the president.”
The attorneys general’s letter references whistleblower reports alleging pressure from the Department of Justice for prosecutors to indict SPLC despite reservations. The DOJ indicted SPLC on April 21, alleging payments made by SPLC to confidential informants amounted to defrauding donors. In response, Fidelity Investments Charitable Gift Fund, Vanguard Charitable Endowment Program, and Donor Advised Charitable Giving Inc. restricted or halted payments destined for SPLC.
Donor-advised funds provide tax deductions for donors and allow strategic giving; these funds controlled over $327 billion in assets with nearly 3.6 million accounts in 2024 according to National Philanthropic Trust. The attorneys general argue that cutting off donations solely because an organization is under investigation risks making these funds tools for retribution rather than philanthropy.
State attorneys general serve as chief regulators of charitable nonprofit corporations across their states. They ensure proper registration under state laws while also advocating for vulnerable groups including workers, immigrants, seniors, promoting safer communities, supporting crime victims with law enforcement partners, protecting consumers’ rights and offering complaint services related to consumer fraud and civil rights according to the official website.
Raoul and his colleagues ask fund sponsors whether their actions might undermine donor intent or help weaponize government power against nonprofits simply exercising protected First Amendment rights. The letter also notes concern about a lack of transparency regarding which other nonprofits have had donations paused.
