The discussion of the budget at Convention made it clear that there is confusion about how League activities are financed in Vermont.
The regular operating expenses for the LWVVT are supported by annual dues and member contributions. The League is a 501(c)(4) organization, and contributions are not tax deductible.
In the late ‘90’s, the LWVVT received a generous legacy from the estate of Elizabeth (Nikki) Keyes, a LWV Central Vermont member. This gift was unrestricted. The Keyes Trust was established, with two Trustees, a League member (currently Sonja Schuyler) and one outside Trustee.
These funds are used for special projects, upon the request of the LWVVT Board of Directors.
Over the years, the Keyes Trust has waxed and waned with the nation’s economy. Following the 2015 LWVVT Convention, the League, through its financial advisor at Morgan Stanley, Derek Graddock transferred the Trust’s investments to two separately managed account funds that seem to have the renewable energy and sustainability goals as the League. Since then the Fund has prospered, and is currently valued at just over $120,000.
An early decision of the LWVVT Board was to create an Education Fund, and $20,000 was taken from the Keyes Trust to do so. The Ed. Fund is a 501(c)(3) (charitable) organization, and donations to it are tax deductible by the donors. The funds have been used to sponsor an annual essay contest for high school seniors with a cash scholarship, and to publish educational materials such as the “Voting in Vermont” brochure and the Vermont Citizen’s Guide to Government in Vermont.
In recent years the Education fund has struggled with fundraising, and their finances have been depleted.
Through 2016 the Ed Fund maintained its ability to pay scholarships through monies in its checking and CD accounts. 2017 will be the first year that the Ed Fund will draw monies from the Keyes Fund in orderto support scholarships.
Because of that, the number ofscholarshipsfor
2017 was dropped to three at $1,000 each.
Members spent much of their meeting time throughout 2015 and 2016 discussing the future of the Ed Fund. Monies were dwindling and a fund-raising letter to members produced only a small return. It was felt that the Fund was not sustainable. Additionally, some members would no longer be able to serve on the Board. Because of that, the members discussed spending down the remaining monies and disbanding the group entirely. However, the group decided to continue but to ask the State Board for help with both finances and membership.
With the board at full strength again, it is hoped that the Ed Fund will again become self-sustaining.