It\u2019s unusual for an administration to take this kind of action when federal funding isn\u2019t involved and without citing complaints from specific donors.<\/p>\n\n\n\n
FBI Director Kash Patel, right, and acting Attorney General Todd Blanche speak about the Southern Poverty Law Center\u2019s indictment in April 2026. Nathan Posner\/Anadolu via Getty Images<\/a><\/p>\n\n\n\n The Southern Poverty Law Center was indicted on April 21, 2026<\/a>, on federal fraud charges. The Justice Department alleges that the civil rights group known as the SPLC improperly raised millions of dollars to secretly pay leaders of the Ku Klux Klan and other white supremacist and extremist groups for inside information.<\/em><\/p>\n\n\n\n The Justice Department alleges that the SPLC, based in Montgomery, Alabama, and founded in 1971<\/a>, defrauded its donors<\/a> by making \u201cmaterially false representations and omissions about what the donated funds would be used for.\u201d<\/em><\/p>\n\n\n\n Following the indictment, the SPLC said it \u201cwill vigorously defend ourselves, our staff, and our work\u201d against what it described as false allegations.<\/em><\/p>\n\n\n\n The Conversation U.S. asked Beth Gazley<\/a>, an Indiana University scholar of nonprofits and civil society, to explain the significance of this indictment and to put it into the broader context of the Trump administration\u2019s actions regarding some nonprofits.<\/em><\/p>\n\n\n\n Are there any precedents for this case?<\/strong><\/p>\n\n\n\n Tax-exempt nonprofits must follow the law like other institutions. Although nonprofits are sometimes charged with and convicted of fraud, nonprofit fraud cases are relatively rare.<\/p>\n\n\n\n One study found 219 internally detected fraud cases<\/a> from 2008-2011, out of approximately 1.5 million registered U.S. nonprofits. Only 20 of those cases involved defrauding donors<\/a>.<\/p>\n\n\n\n The American Society of Fraud Examiners found similarly low numbers<\/a> of nonprofit fraud cases.<\/p>\n\n\n