Pooled Income Fund

A pooled income fund is a type of mutual fund comprised of gifts that are pooled and invested together. Income generated from the fund is distributed to both the donors and their named beneficiaries according to the donors’ share of the fund.

If you are a donor to the fund, you and your beneficiaries receive quarterly payments for life. Upon your death the value of the assets will be transferred to the beneficiaries.

For example, a donor owns stock with a value of $10,000. She donates the stock to a pooled income fund to fund scholarships at COA, while reserving an income interest for life.

In the transfer of stock to the fund, a capital gain on the appreciated value is not recognized, and so the donor avoids capital gains tax. She will also receive a charitable deduction for the year she entered into the pool, thus lowering her taxes.



Benefits

  1. You ensure a perpetual income for yourself and/or others.
  2. You may claim a tax deduction.
  3. The pool continues to make your future gift to COA.