No tax charges filed in Southern Poverty Law Center probe, after IRS lawyers determined informant program legally struct

[riversedge]

Source: cbs


No tax charges filed in Southern Poverty Law Center probe, after IRS lawyers determined informant program legally structured, sources say


Updated on: May 29, 2026 / 2:58 PM EDT / CBS News


Federal agents previously investigated the Southern Poverty Law Center's paid informant program for possible tax crimes, but the probe failed to yield any charges after Internal Revenue Service lawyers determined it was legally structured, sources familiar with the matter told CBS News.

Agents from IRS Criminal Investigation in 2019 and 2020 homed in on shell bank accounts that a former chief financial officer at the civil rights nonprofit opened to pay informants in exchange for intelligence about hate groups. The agents sought to determine whether the SPLC unlawfully failed to file tax returns for those payments, sources said.

But a Treasury Department rule exempts 501(c)(3) nonprofits from filing tax returns in connection with payments to informants who provide information about potential criminal activity. As a result, IRS lawyers later cautioned against seeking an indictment on tax charges, several of the sources said.
.............
The Justice Department in April obtained an 11-count wire and bank fraud indictment against the SPLC over the center's informant program, alleging it defrauded its donors and duped its banks by creating shell accounts to funnel money to insiders who belonged to the same hate groups it pledged to dismantle.

The group denies wrongdoing and has pleaded not guilty.




Read more: https://www.cbsnews.com/news/tax-probe-southern-poverty-law-center/

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Trump is going to need more catsup!!

[Pinback]

1. Ha ha ha ha ha!!

Ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha!!!

Also: bwa-ha-haaaaaaaa!!!!!

What a great Friday afternoon present! This reminds me, I need to make another donation to SPLC to hwlp them celebrate.
🎉

[in2herbs]

2. American workers who use a DAF to make charitable donations via their IRAs should be aware that

when the news of the SPLC investigation came out some large investments companies announced that they were not going to honor their clients' request to make DAF donations to the SPLC and instead were donating to charities they chose. In other words, even though the money belongs to the investor (American worker) if the investment company does not agree with the investor's choice, the American worker's money will not be donated to the charity of the worker's choice.

What will it take for Americans to understand that once they hire a financial advisor, the financial advisor/investment company, not the American worker/investor has total control over all of their hard-earned money???

[Pinback]

3. Yep.

This is why I continue to donate directly to the organizations I support. Never have used a Donor-Advised Fund.

[in2herbs]

4. You are very smart! nt

[Skittles]

11. can you cite a source for that

that they were "instead donating to charities they chose" thanks (I'm assuming you mean QCD, qualified charitable contributions)

[in2herbs]

12. No I meant what I wrote -- DAF. A QCD is for seniors who receive their RMD. There were news articles and

even some posted on DU about it.

Any investor at any age can donate to charities using their IRA for DAF donations.

In order to understand how this can be done you must understand "discretionary investment authority".

The news reported that a few days after the DOJ announced its investigation into the SPLC in April 2026, these institutions cited Justice Department (DOJ) indictments regarding the SPLC's financial practices as the reason for the temporary suspensions of DAF funds.

Major investment and financial services companies have blocked donor-advised fund (DAF) distributions to the Southern Poverty Law Center (SPLC). The primary firms that refused to process investor DAF donations include:

Fidelity Investments: Halted grants through Fidelity Charitable.
Vanguard: Paused donations through Vanguard Charitable.
Charles Schwab: Suspended account holders' ability to direct money to the SPLC via their affiliated DAF provider, DAFgiving360.

[Skittles]

13. I understand they were paused

but where does it say they subsequently "chose" where to send the donation?

[onenote]

14. Exactly. I am unaware of any DAF making

grants unilaterally chosen by the DAF even if they decline to make a grant recommended by the creator of the DAF.

[Skittles]

16. I'm thinking DAF or QCD, that would be highly illegal?

[in2herbs]

17. The discretionary investment authority giving them the authority to make alternative donations is

contained in the DAF contract.

[Skittles]

18. anyone would be a fool to agree with that

[in2herbs]

19. I totally agree with you however, every contract with a financial advisor contains this clause. When one

signs on for a DAF through their financial advisor the FA funnels the DAF money through his financial investment company's 501(c)3 sponsoring charitable organization. All DAF donations go into a pool with other donations to this 501(c)3 org. The investor (working American) can designate the charity but no longer is in control of his donation because the financial investment company is under no obligation to comply because of discretionary investment authority --- and there is no way the investor can ever be sure the designated donation was delivered.

Meanwhile the financial investment company makes bank by taking a percentage of the DAF donation for its fees.

[Skittles]

20. glad I never did one

indeed

[Biophilic]

5. Well, this is a surprise.

I’m just surprised that they got here so quickly. I would think trump’s government jerks would want to draw it out. I guess if you have absolutely no evidence along with supporting laws there really isn’t much you can do. Too bad the government lawyers didn’t know that to begin with….. of course they did. The bastards.

[nuxvomica]

7. I think the walls may be closing in, finally

Polling is looking really bad for Republicans so we are seeing signs of withering support for Trump. The senators who are balking at the J6 slush fund is one data point, and the IRS lawyers baling on this is another, but there are probably many others. The resistance is working but so is the incredibly self-defeating power of the mob boss's unrestrained hubris. What happens if an energized field of Democrats manage to take Congress? Think of al the crimes committed right out in the open and how exposed his family and cronies will be. All because of hubris.

[Biophilic]

9. I seriously hope that they are at least a little afraid.

They certainly should be.
I’ve developed a greater understanding of some other people; the Germans prior to and during WWII and the French during the French Revolution.

[littlemissmartypants]

6. The revenge regime is thankfully not great a lawfare.

[senseandsensibility]

8. So much losing

[Pompoy]

10. "The indictment does not contain any tax-related charges"

So, the prosecution is still going forward.