QUESTIONS AND ANSWERS
1. Does the Trust Agreement comply with Alaska gift law?
Yes. The Trust sets up strict guidelines on who can or cannot contribute to the Trust. For instance, neither Alaska registered nor federally registered lobbyists may make a contribution. Corporations may not contribute. The Trust limits how the money is spent.
Alaska Statute (“AS”) 39.52.130 Improper Gifts provides as follows, “(a) a public official may not solicit, accept, or receive, directly or indirectly, a gift, whether in the form of money, service, loan, travel, entertainment, hospitality, employment, promise, or in any other form, that is a benefit to the officer’s personal or financial interests, under circumstances in which it could reasonably be inferred that the gift is intended to influence the performance of official duties, actions or judgment.”
The Trust has a specific provision to address this law and states: “The Trust shall not accept any donation that is given, offered, or promised in any way or for any purpose that, in the sole and absolute discretion of the Trustee, would be a violation of any federal, state, or local law” and “The Trust shall not accept any donation that is made upon a condition that it be paid or applied other than for the purpose of the Trust.”
2. Can the donations be used for political or campaign purposes?
No, donations can only be used for the stated purposes of the Trust, which are legal expenses incurred by or on behalf of Sarah Palin, her family and staff. Donations cannot be used for political or campaign purposes.
3. Is a donation considered a political contribution to Sarah Palin?
No. Under Alaska law (AS 15.13.400) a payment of money or anything else of value is only considered a “contribution” to the extent it is made for the purpose of influencing the nomination or election of a candidate. The Trust document makes clear the purpose of the Trust is to pay legal expenses and may not be used to influence the nomination or election of a candidate.
4. Do donations count against the contribution limits for political campaigns?
No. Since donations to the Legal Expense Fund cannot be used for political or campaign purposes, they do not count against what an individual can contribute to a political campaign.
5. Is there any monetary limit on contributions?
Yes, the maximum acceptable contribution set by the terms of the Trust is $150.00. Absent this self-imposed limit, there are no limits on amounts that could be donated to the Trust. Amounts in excess of $13,000 would be subject to the gift tax.
6. Is there any limitation on who can contribute?
Yes. First, under the terms of the Trust, only individuals may contribute. Therefore, corporations, unions, partnerships, etc may not make a contribution.
The Trust will not accept any donation from a registered lobbyist under Alaska law or anyone who has competitive commercial contracts for products or services issued to the State of Alaska.
The Trust will not accept any donation from a federally registered lobbyist, a lobbying firm, or an agent of a foreign principal.
The Trust will not accept any donation from any foreign national.
7. Who decides what contributions to accept or reject?
If acceptable under the terms of the Trust, the Trustee has the sole authority to make the determination to accept or reject a contribution.
8. Will there be any disclosure of contributions and expenses?
Yes. The Trustee will disclose on a quarterly basis the contributions as well as categories of expenses with amounts.
9. Can the funds be used for personal purposes?
No. Donations can only be used for legal expenses incurred by counsel on behalf of the Governor, her family, and staff as approved by the Trustee.
10. Where does the unspent money go?
Once the purposes of the Trust no longer exist, the Trustee, in her sole discretion, will donate unspent funds to qualified 501 (c)(3) organizations.
11. Who gets to decide how money is spent?
The Trustee has the sole discretion to determine how the money is spent.
12. Are there limits on how much money can be raised or spent?
Other than the self-imposed contribution limit, there is no limit on how much money can be raised or spent.
13. Why is this fund being created?
The Trust Fund is being created to assist Sarah Palin, her family, and staff in paying legal expenses and costs incurred from previous investigations as well as future complaints filed. Her staff is similarly being targeted by these complaints and has also incurred and is incurring significant costs.
14. Who is the Trustee?
She is Kristan Cheryl Cole. She is a long-time Alaskan who is proud of her state and is dedicating her time and efforts to defend the integrity of the Governor’s Office and restore the Governor’s effectiveness in reforming government.
To read more about the Alaska Fund Trust, click here, or for additional information and related documents please visit the Media/Documents section.