Page 16 - TFRW PNL July 2018

Inspire. Unite. Achieve.
Fundraising

by VP Finance Becky Berger

[email protected]

Plan Your Political Legacy

A unique fundraising opportunity exists within your club...estate planning.

A retirement, divorce, or new job can prompt people Planning for a Political Legacy
to reflect on their legacy, “What are we going to do
with all this stuff we’ve accumulated in our lifetime?” Donor and family are active in politics. Donor has
For older people without children, step-children or an interest in shaping the future of America. Donor
grandchildren, the decision can be even more complex. has given to state and Federal political initiatives.
“It’s a move from success to significance. Your whole Organizations have come to rely on Donor’s gifts.
life you’ve probably been focused on your career and Donor has established a charitable foundation for
getting ahead. Estate planning is really reflecting on charitable giving. Much like his charitable foundation,
your legacy. What do you want to be remembered for?” Donor does not want political giving to stop at his
passing and wants to support his descendants that
While many people leave a portion of their estate to have an interest in politics. Donor would like to set
charities, specifically 501(c)(3)s many of our Republican aside a portion of his estate to continue his legacy.
Activists, TFRW members, and Elected Officials or
Candidates who find the work of our organization A Few Planning Options
beneficial in controlling expanding government and
protecting our conservative values may wish to arrange • Estate Bequest to Politically Oriented
for their support of TFRW and its clubs to continue Organizations
after their passing. This is something we should share
• Testamentary Planning with Trusts
with our members statewide. To have an impact on the
future of politics in Texas, some may wish to leave a
• Lifetime Transfer to Trust for Descendants and
legacy that will sustain us in good years and bad.
Politically Oriented Organizations
Statutory Exemptions to Gift Tax. Not all gifts are
• Supercharged Lifetime Transfer to Trust for
taxable. There are many exceptions, for example, a
Politically Oriented Organization
gift between spouses. Four exceptions are relevant
but only one pertains to the Texas Federation of
Estate Bequest
Republican Women PAC as we are a 527 Organization.
527 Organizations: § 2501(a)(4) specifically exempt Favorable transfer tax treatment is provided for
from the gift tax transfers made to political parties lifetime contributions to politically oriented
or committees described in § 527. Prior to the 1974 § 501(c)(4) organizations and Super PACs exempt
enactment of § 2501(a) gifts to political organizations under § 527. Gifts are exempted from the gift tax.
were taxable, but in two cases considering the issues Testamentary transfers, on the other hand, are
the courts found in favor of the taxpers. subjected to the estate tax.

Before writing TFRW into your will, we urge you to seek legal advice and input from your accountant. Your family
members may be very successful and not need your financial gift, but it is always wise to let them know what you
are doing to avoid them contesting your will when you are gone. We want this donation to be a blessing to both
TFRW and your family.

Information for this article was taken from pertinent portions of the NY Times article “In Estate Planning, Family
Isn’t Always First” and McDermott, Will, and Emory Continuing Legal Education.

PRESIDENT’S NEWSLETTER | JULY 2018 16 TEXAS FEDERATION OF REPUBLICAN WOMEN