Wall Street’s Nonprofits Use Selective, Opaque Logic to Defund Charities by Ellis Simani August 14, 2026, 5:00 am

https://www.propublica.org/article/donor-advised-funds-charity-contributions?utm_source=sailthru&utm_medium=email&utm_campaign=majorinvestigations&utm_content=secondary Wall Street’s Nonprofits Use Selective, Opaque Logic to Defund Charities A quarter of all individual giving in the U.S. is made through donor-advised funds, giving their sponsors vast power to decide which charities can receive donor dollars. Three major DAF sponsors have deemed the Southern Poverty Law Center ineligible for donations after President Donald Trump’s Justice Department indicted the organization in April on controversial fraud charges. ProPublica decided to investigate how these Wall Street-affiliated funds make these high-stakes decisions. We uncovered troubling inconsistencies in how some DAF sponsors applied their policies — and found that donors and affected charities are routinely left in the dark about how decisions are made. The three DAF sponsors that cut off donations to the SPLC — Vanguard Charitable, Fidelity Charitable and Charles Schwab’s DAFgiving360 — are nonprofits spun off from major brokerages. They offer account holders immediate tax deductions on contributions they can later recommend be granted to charities. (ProPublica has received donations through each of these groups.) These sponsors say their decisions to freeze accounts are viewpoint neutral, and ProPublica found no evidence to the contrary. Removed groups spanned the political spectrum. But ProPublica found that Fidelity Charitable and DAFgiving360 appeared to apply their policies unevenly. Experts say the opacity behind these decisions is particularly problematic under the Trump administration, which has a track record of making politically charged accusations that don’t hold up in court. All three fund sponsors declined to be interviewed for our story or answer detailed questions, including on their process for identifying nonprofits facing allegations and choosing which to ban. Fidelity Charitable said it does not comment on decisions involving individual charities. DAFgiving360 said it “communicates directly with donors when a grant recommendation is impacted by an eligibility determination.” Vanguard Charitable noted its “procedural pause” is “not a value judgment.”