During the fiscal year ended 12/31/2021, the vast majority of the League of Conservation Voters Education Fund's program spending consisted of grants provided to the affiliated League of Conservation Voters, Inc., a 501(c)(4), tax-exempt, social welfare organization. For this reason, CharityWatch is unable to provide a complete rating of League of Conservation Voters Education Fund for the fiscal year ended 12/31/2021. More detail is provided below.
According to the League of Conservation Voters Education Fund (Education Fund) audit of December 31, 2021 (Note 10, Related Party): "The Education Fund is affiliated through common management with the League of Conservation Voters, Inc. (the League). The League, a non-profit organization exempt under Section 501(c)(4) of the IRC [Internal Revenue Code], was established to promote effective advocacy for the protection of the environment. The League and the Education Fund have separate Boards of Directors, and accordingly, the [audited] financial statements of the organizations have not been consolidated." [...] "...[T]he Education Fund provided grants to the League during the year ended December 31, 2021 of $34,000,000." [A $34 million grant to the League of Conservation Voters is also reported on Schedule I, Part II of the League of Conservation Voters Education Fund's 2021 IRS Form 990 tax filing.] The $34 million granted by the League of Conservation Voters Education Fund to the affiliated League of Conservation Voters during the year ended December 31, 2021, as cited above, represents approximately 73% and 69% of the Education Fund's reported total program services expenses and total expenses, respectively, in 2021. CharityWatch's methodology is not designed to measure how efficiently a nonprofit grants funds to one of its affiliated organizations. For this reason, since the vast majority of the League of Conservation Voters Education Fund's program spending in 2021 consists of grants to its related 501(c)(4) entity, we do not believe it is fair to publish a Program % for the League of Conservation Voters Education Fund alongside those of other nonprofits that conduct their own programs and/or primarily make grants to other, independent nonprofit organizations. However, given that the League of Conservation Voters Education Fund publishes its own, separate financial statements, CharityWatch is able to provide a Cost to Raise $100 ratio for League of Conservation Voters Education Fund: For the fiscal year ended 12/31/2021, League of Conservation Voters Education Fund spent a very reasonable $3 to raise each $100 in public support. CharityWatch provides a complete letter grade rating, including a Program Percentage, for League of Conservation Voters, the affiliated 501(c)(4) nonprofit entity that received the $34 million in grants from the Education Fund in 2021.
CharityWatch separates the ratings for 501(c)(3) & 501(c)(4) organizations, even if their financial activities 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 501(c)(3) public charity and 501(c)(4) social welfare entities, read "Sorting Out Nonprofit Pairs" in the "Articles & Alerts" section, below.
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