Pooled Income Fund Offers Flexible Income

Suppose you would like to make a gift to Junior Achievement that provides income, but you prefer an income that can fluctuate over time with prevailing interest and dividend rates. In this case, you might want to consider a Pooled Income Fund. As in the case of a charitable gift annuity, participation in a Pooled Income Fund can usually begin with a relatively modest amount.

Under the terms of the Pooled Income Fund, a number of donors make contributions to a common fund (structured as a separate trust). The funds are invested for a balanced return of income and growth over time. Each year a pro rata share of the earnings of the trust is returned to each participant.

As in the case of a charitable gift annuity, an immediate income tax charitable deduction is allowed for a portion of the value of the cash or other assets contributed to the Pooled Income Fund. Capital gain tax that would be due on a sale of appreciated assets contributed to the Pooled Income Fund may be entirely avoided. Assets used to fund your Pooled Income Fund contribution can also be removed from your estate for federal tax purposes.