Why does the League of Women Voters have a State and Local Grant Service?
” Short Answer: So that state and local Leagues can solicit tax-deductible donations. Long Answer: All state and local Leagues are classified by the IRS as 501© (4) nonprofit organizations. As such, donations to them are not tax-deductible. The League of Women Voters Education Fund (LWVEF) was established in 1957 as a separate, tax-exempt organization with a 501© (3) status. Organizations with 501 © (3) status are allowed to solicit contributions that are tax deductible as charitable donations. Oftentimes, state and local Leagues may wish to solicit tax-deductible donations for educational funds to their own to accept such gifts. By allowing the LWVEF to act as their agent or “sponsor” in the fundraising process, Leagues can solicit tax-exempt donations. The way this works is simple: Leagues solicit donations, donors write out checks to the LWVEF, the LWVEF deposits the funds, and finally, the LWVEF cuts checks to the state and/or local Leagues. There are, of course, rules and conditio
