What is a Trust?

What is a Trust?
The very first question the Trustees of the Republican Leadership Trust hear is this: what is a Trust?  What makes it so different from any other political committee or campaign or “527″ organization?  While the Trust is under law a political committee and is also under the Internal Revenue Code, a “527″ organization, it is also a charitable trust.  The Republican Leadership Trust is probably the only such trust in existence today in America.  Historically however, politically active trusts were quite common.  Woman’s suffrage probably would have come to pass without politically oriented trusts. 

A legal trust is administration of certain property (the trust re or property) contributed by a donor (the trust grantor) by fiduciaries (the trustees) on behalf a third party (one or several beneficiaries).  A charitable trust is where the trust property is given to serve the general public or a particular segment of the public (particularly those in need).   Because the trustees are afforded a solemn duty to administer a trust in the best interest of the beneficiary, they must exercise the highest degree of impartiality and fidelity in discharging their duties.  If the trustees are administering a trust on behalf of the general public, that standard is even higher.   So important are the duties of trustees, that they are supervised by and report to a court, which in most states is known as the surrogate’s court, or probate court, and in Pennsylvania, is known as the orphan’s court.

But how is the Republican Leadership Trust a Charitable Trust?
The Republican Leadership Trust was established October 4, 2007 by two donors, which under trust law,  are called “Settlors,” the 59th Republican Ward Executive Committee and Dr. John Templeton by putting into trust, a computer software program, Republican All in One and its public portal, GOP onDemand.  Three co-trustees were appointed to administer the trust property, Republican All in One and GOP onDemand. 

Why is the Trust a charitable trust?  Because under Pennsylvania law, protecting the First Amendment rights of all voters, despite being political in nature, is a charitable purpose.   The general public is served by the GOP providing strategic association, the “meaningful opportunity to participate” in the Republican Party. 

Why a Trust?
But why a trust, why not just be a regular political committee?  Politics is inherently partisan, people have differing opinions and objectives.  Putting the software into a Trust avoids the sometimes competing, partisan interests that political parties have to address.  The Trustees must, indeed they are compelled by law to always be “above the fray.”  Their solemn responsibility to administer a gift that was donated to serve the general public.  The Trustees are held answerable not to the party, or even the donor, but to the courts.  No political party or campaign committee is under that type of scrutiny.

For a copy of the governing Trust law, click here for the Pennsylvania Uniform Trust Act, as published in the Trustees’ Internal Operating Procedures.