Pooled Income Fund

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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 ?
Through its donor advised funds and pooled income funds, the USCGT offers the opportunity to manage philanthropic interests and goals through one simple, straightforward vehicle.
The details on each are beyond the scope of this article, but the major types include charitable gift annuities (CGAs), charitable remainder annuity trusts (CRATs), charitable remainder unitrusts (CRUTs) and pooled income funds (PIFs).
2, 3) There are three distinct types of split-interest trusts: charitable remainder trusts, charitable lead trusts, and pooled income funds.
The Pension Protection Act amended IRC [section] 6034 to allow the IRS to merge forms 5227 and 1041-A for charitable remainder trusts, charitable lead trusts and pooled income funds.
A: The term "financial account" includes money market funds, checking, demand, savings, pooled income funds and time deposit accounts, as well as securities accounts.
Created in 1969 under Section 642(c) of the Internal Revenue Code, pooled income funds are similar to charitable remainder trusts in that they provide lifetime income for the donor, with the remainder of the fund going to the designated charity when the last beneficiary dies.
Elizabeth Finch, manager of gift planning at the Natural Resources Defense Council (NRDC), breaks it down into three simplified categories: charitable gift annuities, pooled income funds and trusts.
Other types of deferred gifts include pooled income funds and charitable gift annuities.
These planned gifts include pooled income funds, charitable remainder annuity trusts and unitrusts.
The Life Income Funds, established by the Philanthropy Fund of America, are the nation's only Pooled Income Funds (under IRC Section 642(c)(5)) that focus on accepting real estate donations.
These include pooled income funds (where individuals donate remainder interests to charity while retaining an income interest); qualified funeral trusts; electing small business trusts; and charitable remainder trusts.
Terminating pooled income funds continued to have the longest average lifetime of all the SIT types, slightly more than 26 years, approximately 5 years longer than terminating pooled income funds in 2009.