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.
When donors make the original gift to the pooled income fund, they receive a tax deduction for the value of the remainder that will go to charity.
Capital gains made up the majority of trust income for all trust types with the exception of pooled income funds (Figure C).
Under a pooled income fund (PIF) arrangement, donors to a charitable organization contribute assets to a pool of donated assets and in return receive income payments for the remainder of the grantors' lifetimes.
Special rules are provided for computing (1) income for CRUTs and pooled income funds, (2) marital deductions and (3) gains or losses on property distributions.
Split-interest trusts and pooled income funds are trust entities that distribute to both charitable and noncharitable beneficiaries.
There are three main types of split-interest trusts: charitable remainder trusts, charitable lead trusts, and pooled income funds.
Under charitable giving, for instance, a person can get a basic explanation of various options available, such as establishing a charitable trust, foundation, gift annuity, lead trust or pooled income fund, and, using the charitable giving calculator, get a broad idea of the tax savings each offers before meeting with an expert who can carry it through.
Donors to a pooled income fund are entitled to a tax deduction for the year in which the contribution was made.
The Charitable Gift Fund also offers a Pooled Income Fund program to donors.
In a pooled income fund, which is also popular, the donor's gift is commingled with other money into a fund managed by the community foundation.
If you decide a pooled income fund fits your needs, the Charitable Gift Fund offers one that may be of interest.