Pooled Income Fund


Also found in: Acronyms.

Pooled Income Fund

A mutual fund comprising of donated securities and/or cash, the proceeds of which go to charity and donors. One donates securities and cash to create a pooled income fund, which is then invested as if it were a regular mutual fund, which pays dividends to donors each quarter in proportion to the amount donated as a percentage of the whole fund. When a donor dies, what remains of his/her donation as a percentage of the total fund is given to a charity. Usually charities administer pooled income funds, and the remaining donation goes to their own charitable operations. All cash and securities donated to pooled income funds qualify as charitable gifts for tax purposes; importantly, securities so donated are exempt from capital gains tax.
References in periodicals archive ?
As in previous years, terminating pooled income funds continued to have the longest average lifetime of all the SIT types, approximately 18 years.
All contributions to a pooled income fund are commingled, and all transfers to it must meet the requirements for an irrevocable remainder interest.
In determining the amount of a charitable contribution to a pooled income fund for purpose of determining the allowable deduction, the value of the remainder interest is generally determined on the basis of the highest rate of return by the fund for any of the three taxable years immediately preceding the taxable year of the fund in which the transfer is made.
The assets within the pooled income fund are managed by the particular charity that established the fund.
4 POOLED INCOME FUND (One Life--Table 90CM) Transfer to Trust: $100,000 Rate of Return: 6.
However, unlike a charitable remainder trust, a pooled income fund is not a tax-exempt entity.
Provided the trust adheres to strict limitations, the grantor of a charitable remainder unitrust or annuity trust may be able to successfully act as a trustee; the contributor to a pooled income fund may not.
Pooled income funds formed by the Philanthropy Fund of America at www.
With a spouse as the income beneficiary, the full value of the asset given to the pooled income fund should escape all federal estate taxes.
To attract younger donors, Houston and her colleagues developed a creative approach to marketing pooled income funds that were not experiencing much activity at the time "What we decided to do was to look at our pooled income fund for growth and find away to make that appealing to younger individuals," said Houston.
Under a pooled income fund (PIF) arrangement, donors to a charitable organization contribute to a pool of donated assets and in return receive income payments for the remainder of the grantors' lifetimes.
The government pointed to the statute's plain language that allows no deduction for a transfer to a charitable beneficiary where an interest in the same property also passes to a noncharitable beneficiary, except in the case of a charitable remainder annuity trust, charitable remainder unitrust or a pooled income fund.