FAQ

What is a Pooled Income Fund?

A pooled income fund is a charitable giving vehicle wherein an individual, family or corporation makes an irrevocable, tax-deductible contribution of personal assets to a charity. The fund then pays a monthly income to the income donor or donors for their lifetime(s). The balance is then distributed to a pre determined qualified 501(c)(3) charitable organization(s) of the donors choice.

Why contribute to a Pooled Income Fund?

Pooled Income Funds provide a number of benefits including:

• Ability to accept and process appreciated securities on which the donor does not have to pay capital gains tax.
  

• Variety of investment options to diversify your contribution(s).
  

• Capacity to receive one block of securities that can benefit multiple charities.
  

• Receive income for life now as well as a current charitable tax deduction.
  

Who should be listed as the donor?

The donor is the person or persons responsible for making the contribution(s) to the Pooled Income Fund. If the contributions are from joint ownership, then multiple donors can be listed. If the donor wants non-contributors to have account control, they should name those individuals as account advisors.

What is an account advisor?

An account advisor is named by the donor to help oversee management of their account. An account advisor is usually a spouse, child or relative.

What is an account successor?

An account successor is the person identified by the donor to take over the account after the donor's death. Multiple successors can be named to an account and, depending on the donor's wishes, the account can be split equally among the successors, or they can share the responsibilities. Successors can name future successors to take over the account in the event of their own death, essentially leaving a legacy from one generation to the next and so on.

What is a charitable beneficiary?

A charitable beneficiary is a charitable organization(s) identified by the donor to receive the remaining assets of the account. This is done as an alternative to naming an account successor(s).

Can an account be named after someone other than the donor?

Yes, donors can choose any name for the account. However, it is recommended the name reflect the donor's name and/or the main purpose of the account such as "The Jones Family Foundation."

When is the contribution considered a charitable donation?

A contribution is complete when the asset is out of the donor's control. The time frame varies depending on the type of asset and when it's transferred to the account. The process usually takes less than two weeks.

What is the minimum to establish a Pooled Income Fund?

The lowest Pooled Income Fund we work with has a minimum of $20,000. We are independent financial advisors and work with many different Pooled Income Funds and can help you select the funds that most closely match your requirements.

What types of assets can be contributed?

Cash, mutual funds, bonds, most publicly traded securities and real estate on a case by case basis. Please give us a call to help review your holdings to determine if they are appropriate for use in a Pooled Income Fund. If for any reason a fund can not accept a contribution, it will be returned to the donor's account of origin.

Can I contribute foreign stocks?

Yes, if they're traded on domestic stock exchanges. If they're not, please contact us prior to donation so we can have the security properly reviewed by a Pooled Income Fund.

What type of asset is best to contribute?

Appreciated securities that have been held for more than one year make the most effective contributions. You can avoid the capital gains tax on the securities and can deduct the total value of the contribution from your federal income taxes, up to 30% of adjusted gross income. Unused deductions can be carried forward for 5 years. Because of these advantages, you are able to give more to the causes you support.

What type of organizations can grants be made to?

Grants can be made to charitable organizations that are tax exempt under Internal Revenue Code Section 501(c)3 and public charities under Internal Revenue Code Section 509(a ). Grants can be made to private operating foundations but cannot be made to private non-operating foundations. Most established religious organizations and educational institutions are not listed as 501 (c)3 non-profits but are nevertheless tax-exempt charitable organizations.

Can additional contributions be made to my Pooled Income Fund account?

There is no limit to the number of contributions made to the account. Most Pooled Income Funds have a minimum contribution amount that can be as low as $5,000.

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The information contained on this site is for educational purposes only. It is not intended to be professional tax or legal advice; consult the appropriate professional regarding your specific situations.