Special Investigations

Press Freedom Defense Fund

Big Finance Might Be Dooming the SPLC — Even Before Its Day in Court

Fidelity, Charles Schwab, and Vanguard are tamping down on the Southern Poverty Law Center’s donations as the government’s de facto censors.

Rainey Reitman is the author of “Transaction Denied: Big Finance’s Power to Punish Speech,” and the co-founder and board president of the Freedom of the Press Foundation.

The Southern Poverty Law Center is preparing for the legal fight of its life with the U.S. government — but its most immediate threat is coming from the financial system, rather than the courts.

Fidelity Charitable, Charles Schwab affiliate DAFgiving360, and Vanguard Charitable have begun blocking donor-advised fund, or DAF, donations to the SPLC — effectively cutting off one of the organization’s most important funding pipelines at a critical moment. The decision arrives alongside a politicized and bogus indictment announced late last month by the Trump Department of Justice, which is attempting to paint one of the country’s most prominent watchdogs against hate and racial violence as a promoter of it.

A letter from Democratic Reps. Jamie Raskin and Mary Gay Scanlon notes the House Judiciary Committee has received whistleblower reports that the DOJ “ordered the U.S. Attorney’s Office for the Middle District of Alabama to rush through the indictment of the SPLC despite serious concerns about the strength of the case.” As Alabama Reflector editor Brian Lyman wrote, “DOJ has no evidence of SPLC committing a crime. The organization’s real offense, in the eyes of Trump’s toadies, is its lack of obedience.”

But before any courts can assess the merits of the case, the SPLC is already suffering severe financial consequences.

Donor-advised funds have become a key part of American philanthropy. Managed by firms like Fidelity and Vanguard, DAFs allow donors to receive immediate tax benefits while recommending grants to IRS-recognized nonprofits over time. They are one of the primary channels many nonprofits use to connect with donors.

Vanguard, Schwab, and Fidelity are punishing a lawful nonprofit organization that hasn’t been convicted of any wrongdoing.

Vanguard, Schwab, and Fidelity are punishing a lawful nonprofit organization that hasn’t been convicted of any wrongdoing.

What’s happening to the SPLC fits a broader pattern of using financial exclusion to punish speakers who challenge those in power. In 2010, after WikiLeaks published State Department cables that embarrassed the U.S. government, major financial institutions — including Visa, Mastercard, and Bank of America — cut off its ability to receive online donations. The punishment happened without WikiLeaks ever having a chance to defend itself in a court of law. The consequences were devastating for the organization, which lost more than 95 percent of its revenue the following year.

That episode is often treated as a one-off, but my research has shown that’s far from the case. I’ve spoken to dozens of law-abiding U.S. citizens who’ve lost financial services due to speech or political viewpoints — groups like VoteAmerica, which had a bank........

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