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
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