Description
A charitable trust established and maintained by a qualified nonprofit organization, providing you and/or your beneficiaries with a potential lifetime income stream based on a prorated share of the income earned by the fund. Remaining assets are eventually distributed to the charitable beneficiaries you have recommended.
Key characteristics
- Potential immediate partial tax deduction, based on your life expectancy and the anticipated income stream
- May avoid capital gains tax for gifts of long-term appreciated securities
- Income stream is taxable to the income beneficiaries
- Offers you grantmaking direction, education, and guidance
- Professional investment management
Details
A pooled income fund is a charitable trust established and maintained by a qualifying nonprofit organization, providing a lifetime stream of income based on each donor's share of the income earned by the fund.
A pooled income fund is similar in many respects to a charitable remainder trust. Donors may be eligible to take an immediate partial tax deduction, based on their life expectancy and the anticipated income stream, but must pay income tax on the income they receive from the pooled income fund each year.
Pooled income funds offer professional investment management — and a way to convert appreciated assets into income without incurring capital gains tax.
Donors recommend charitable beneficiaries to receive the balance in the fund after the death of the last beneficiary.
Speak with a representative: 800-280-6357