CharityWatch's rating of Southern Poverty Law Center is for the 501(c)(3) public charity entity (tax ID #63-0598743). The rating does not include the financial activities of the related 501(c)(4) tax-exempt, social welfare organization, SPLC Action Fund (tax ID #83-1085161).
According to the Southern Poverty Law Center tax filing for the fiscal year ended October 31, 2021, the Center made a "Gift, grant, or capital contribution" in the amount of $3,000,000 to SPLC Action Fund in fiscal 2021 (IRS Form 990, Schedule R, Part V). SPLC Action Fund's contributions from unrelated sources in fiscal 2021 totaled $942,196, according to its fiscal 2021 tax filing. Given its relatively small size, CharityWatch does not provide a separate rating for SPLC Action Fund at this time.
CharityWatch issues separate ratings for 501(c)(3) & 501(c)(4) organizations, even when they are included together in a consolidated audit, due to their differing treatments under the IRS tax code. For more information on this topic, please see our sections on Types of Non-Profits, Tax Status, and Treatment of Related Organizations, which can be found on the Our Process page. For more information about things to consider when donating to organizations that have related public charity and social welfare entities, read "Sorting Out Nonprofit Pairs."
According to the Southern Poverty Law Center consolidated audit of October 31, 2021 (Note 2 re: Investment valuation):
"...Investments in marketable securities traded on a national securities exchange and investments in United States government securities are stated at fair value based on the last reported sales price on the valuation date...
"Investment securities are exposed to various risks, such as interest rate, market, liquidity, valuation, and credit. Due to the level of risk associated with certain investment securities and the level of uncertainty related to changes in the value of investment securities, it is at least reasonably possible that changes in risks in the near term would materially affect the amounts reported in the [audited] consolidated statement of financial position and the [audited] consolidated statement of activities."