Part III – Chapter 5
Establishing Local League Guidelines and Requirements
i. Bylaws
Bylaws are fundamental rules drawn up by organizations to govern their internal affairs and their dealings with members and others. They include rules that the organization considers so important that they cannot be changed without prior notice to members and the vote of a specified majority.
League bylaws define the League’s purpose and how it organizes to further that purpose. They are meant to protect the organization and to provide an operating framework.
First Three Articles
The first three articles of the national League bylaws set forth the League name, updated by LWVUS in 2020, present the League’s purpose and policy, and define membership in the League. The first three articles of all local and state League bylaws must be consistent with those of the LWVUS in order to define and maintain the unity of the organization and the powers and privileges of members.
Remaining Articles
Leagues may decide what to include in the remaining articles of their bylaws, provided they reflect democratic procedures. Normally, they contain provisions covering the organization’s officers, board of directors, financial administration, nominations and elections, program, business meetings, parliamentary authority (i.e., Robert’s Rules of Order), and method of amending the bylaws themselves.
Amending Bylaws
Boards should review their bylaws from time to time to make certain they are still appropriate based on changed circumstances or actions taken at state or national League conventions. Before starting the amendment process, a League should consider whether the desired outcome could be achieved by another method (such as a board motion, annual meeting/convention vote, or development of a new policy or procedure). Any amendments to the first three articles that are made at a national convention must automatically also be made to local and state League bylaws; approval at an annual meeting/convention is not required to make the change (but the change should be announced).
LWVUS guidelines, bylaws and sample bylaws for local and state Leagues can be found at:
www.lwv.org/league-management/bylaws/sample-bylaws-template
ii. Becoming part of LWV Minnesota’s 501(c)(3)
LWV Minnesota is a 501(c)(3) nonprofit organization (our legal name is League of Women Voters of Minnesota Education Fund). The work of LWV Minnesota is both education and advocacy, including lobbying at the state, local and municipal government levels (which fall below the IRS guidelines and are fully reported and transparent to the relevant regulatory bodies) .
Donations to LWV Minnesota are tax-deductible.
Membership dues paid to LWV Minnesota are tax-deductible (LWVUS dues are not tax-deductible).
Local LWVs and State Units may raise tax-deductible money for use for educational activity.
If a local LWV dissolves, any remaining funds are absorbed by LWV Minnesota general fund.
If a local LWV merges or is absorbed by another LWV, the LWV Minnesota restricted funds are distributed to the new entity.
All local LWVs are now eligible to restructure to Nonprofit LLCs, which are 501(c)(3) organizations.
Local Education Funds
LWV Minnesota accepts, holds, and disburses funds donated to local LWVs who continue to operate as a 501(c)(4) for educational projects. The process does require a paper trail and prior approval by your local board and LWV Minnesota Board or LWV Minnesota President and Executive Director depending on the project’s scope. LWV Minnesota has material on the process to follow and the forms to use. Education funds may be used for any project that meets the criteria.
iII. Budget Planning and Financials
The board of directors bears the legal responsibility for the League's funds. In order to carry out this responsibility, procedures should be in place to ensure that:
Financial records are accurate, up-to-date and documented.
Appropriate internal controls are in place.
No single person has complete control over financial transactions.
Access to computerized financial records is limited through use of a password.
Computerized records are backed up on a regular basis, with off-site storage.
Financial records are periodically reviewed or audited.
The League Budget
A budget is a planning document that reflects the goals, priorities and activities planned for the year. It is the responsibility of a local/state League board to:
Provide input to the committee charged with budget development.
Review the proposed budget prepared by the committee.
Revise it as necessary.
Recommend its adoption by the annual meeting/state convention.
A well-conceived, realistic gross budget:
Reflects all anticipated income and expenses for a fiscal year.
Shows planned growth in members, dues, contributions and League activities.
Includes funds for sending delegates to state and national conventions (an important investment in the League’s future).
Reflects each League’s obligation to support the League as a whole through the per member payment (PMP) system.
Once League members or their delegates adopt the budget, the board is responsible for seeing that it is carried out. Expenses should be recorded and allocated in the same fashion as they were budgeted, and the board should approve any significant expense requests that were not budgeted. The board can revise the budget to respond to changed circumstances, for example if a grant or donation comes in that was not anticipated in the budget, the board has the authority to make those kind of adjustments. Having said this, it is usually the case that Boards do not make major changes in the overall level of expenditures authorized or the general direction of League emphasis approved at the annual meeting or convention.
Development
The League of Women Voters at all levels must be adequately financed in order to operate and achieve its goals. And each level of the League is responsible for the financial well-being of the League as a whole. Financial support for League activities comes from members (who are our most dedicated and committed source of funds) and from the community (individuals, foundations, corporations and businesses).
Fundraising, or development, is a year-round effort, not just a once-a-year fundraising drive. It must be built into every activity and project on the League’s agenda, and it is every board member’s responsibility. In addition to using contacts and making fundraising calls to ask for support for League projects and general operations, another way for a board member to assist with this effort is by making a contribution that is significant for his/her means.
It is reasonable to ask League members to make additional annual financial contributions, over and beyond their dues payment. In addition to mailings, telephone solicitations and personal visits, a League is encouraged to have its website include the capability to receive contributions via a secure system.
Since most giving comes from individuals (not corporations and foundations), Leagues should plan their fundraising efforts accordingly. No matter what development methods are used, remember that appreciation and recognition help to ensure repeated gifts. For more information on League development methods/fundraising tips, see the Leaders section of the LWVUS website.)
Tax Status
LWV Minnesota (official name - League of Women Voters of Minnesota Education Fund) is a 501(c)(3) organization, which means that contributions are tax-deductible for the donor. As a 501(c)(3) organization:
No lobbying will be associated with the event/publication, although advocacy is acceptable (see below for more information about advocacy vs. lobbying).
The event/publication will be offered to the general public.
Questions for candidates will be neutral/nonpartisan.
All candidates will be treated equally.
The Internal Revenue Service has developed detailed regulations on tax-deductible and non-tax-deductible contributions. For example, specific language must appear on reply forms for fundraising letters indicating whether or not a person's contribution to the League will be tax-deductible. When putting on a fundraising event, the League must be sure to let donors know what portion of the event ticket price is tax-deductible (if any).
The IRS also has detailed reporting requirements and restrictions on certain activities that are funded with tax-deductible monies. Voters’ guides and candidate debate activities are sometimes reviewed to ensure that they do not give the impression of favoring any particular candidate. Questions should be unbiased, even on issues where the League has a position, so as to not reflect or suggest a bias or preference for or against any candidate's views. Events exhibiting even an unintentional bias may jeopardize the League's tax-exempt status. Leagues are strongly encouraged to refer to publications such as Face to Face: A Guide to League-Sponsored Debates (published by the LWVEF) and The Rules of the Game (published by The Alliance for Justice) to ensure that their events meet all legal requirements.
Note that it is possible for certain advocacy—but not lobbying—activities to be carried out using tax-deductible monies. Advocacy is a broader concept than lobbying. The League advocates for change through the education of policymakers and the public, and education is a legitimate use of such funds as long as care is taken to be sure that lobbying does not take place. Lobbying is defined as an attempt to influence specific legislation, transmits a point of view on a specific piece of legislation to elected officials or their staffs, as well as a call to action urging the public to contact their legislators about a specific piece of legislation.
Source: https://www.lwv.org/league-management/policies-guidelines/money-matters
IV. Council, Convention and Meetings
LWV is a grassroots organization, which means that members have a voice in decisions at every level. Members elect the board and offices, decide what to study, approve a budget and bylaws, and give general direction to plans for the coming years(s). Any member may attend state and national conventions and may serve as a voting delegate if given that responsibility by their LWV. The number of delegates is proportional to the size of the LWV.
Convention
The LWVUS Convention is held in even years. It meets alternately in Washington D.C. and other cities around the country. The LWVMN Convention is held in odd years at various locations around the state.
Council
Both state and national LWVs also have Council meetings in the years between Conventions.
Annual Meeting
Local LWVs hold annual meetings in the spring to make the decisions referred to above. Every member is encouraged to attend and entitled to vote.
Local League Meetings
Local League meetings offer an opportunity for members to gather and discuss regional issues as well as League initiatives, studies or programs. Larger Leagues often meet in smaller groups called units.
General Meetings are designed to include all members of the local League and as well as members of the public interested in the subject of the meeting.
Board Meetings are held on a regular basis, many meet monthly. The LWVMN board meets at least six times a year. The LWVUS board meets quarterly.