Donating to a Political Cause? Know the Tax and Privacy Rules First.

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WSJ Your Money Briefing 8 min 3 speakers 2 chapters transcribed 2 months ago
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What is the main topic discussed in this episode?

ReliaQuest Advertiser 0:00
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J.R. Whalen 0:30
Here's your Money Briefing for Monday, September 26th. I'm J.R. Whalen for The Wall Street Journal. The midterm elections are a little more than a month away, and that might have some people thinking about making a political donation. And while some donations might be tax-deductible, many aren't. And they can carry privacy implications with them as well.
Laura Saunders 0:54
Do you really want to give to a cause or do you want to give to a candidate or a party? Those are all decisions as well. And all of these decisions have interlocking considerations.
J.R. Whalen 1:06
Our tax reporter, Laura Saunders, has been sorting through the rules surrounding political donations. She'll join us to talk about it after the break.
ReliaQuest Advertiser 1:13
This podcast is brought to you by ReliaQuest. Cyber criminals are constantly attacking. They want your data. They want your identity. They want your innovation. ReliaQuest fortifies your business with agentic defense, AI that detects, contains, and eliminates cyber threats in minutes. It helps your security team move faster at the work that matters most to protect the business now and delivers insights to help them predict what's next. ReliaQuest. Agentic defense for the enterprise.

What tax and privacy issues should I consider before donating to a political candidate?

ReliaQuest Advertiser 1:38
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J.R. Whalen 1:51
It's election season. And for many of us, that means a blizzard of ads online, on TV, in your text messages and in the mail from candidates and groups asking for donations. So what should you know before sending in money to support a political group or cause? Wall Street Journal tax reporter Laura Saunders joins us with the details. Laura, thank you very much for being with us.
Laura Saunders 2:12
Thanks so much for having me.
J.R. Whalen 2:13
So Laura, aside from the candidate or the cause that you want to support, what kinds of financial consideration should go into a political donation?
Laura Saunders 2:21
Well, there are several that people might want to think about. Is your donation tax deductible or not tax deductible? It makes a big difference if Uncle Sam picks up part of the cost of giving to a political cause. Another thing that people should think about is whether their name and the amount of the contribution will be disclosed. Because in some cases it is, and in other cases it's not. Particularly the name, you know, will you be identified with the amount of the contribution? And then, of course, people should think of how much they want to give overall. Is it a lot? Is it five figures, six figures, three figures, two, whatever? I guess it's more important if you're giving a lot to think through these questions.
Laura Saunders 3:04
And then do you really want to give to a cause or do you want to give to a candidate or a party? Those are all decisions as well. And all of these decisions have interlocking considerations.
J.R. Whalen 3:17
Wow, that seems pretty complicated.
Laura Saunders 3:20
It is really complicated. And sometimes if you look at the rules, you think maybe this is complicated on purpose. But the main complication is that some rules for donations are overseen by the IRS, the Internal Revenue Service, and then others are overseen by the Federal Election Commission.
J.R. Whalen 3:39
All right. Well, let's sort through some of these rules for different kinds of donations and see if we can clear some things up. Let's start with individual candidates. What should people keep in mind who are thinking of donating?
Laura Saunders 3:49
Well, donations to individual candidates and to parties are public. Your amount and your name will be published on the Federal Election Commission's website. And they are not tax deductible. And so that's what's important to know there.

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