A pooled income fund is an irrevocable trust established and maintained by a public charity to which many donors can make contributions. Generally, it works as follows:
" Contributions received from individual donors are commingled for investment purposes.
" Each year, the donor (or the donor's designated income beneficiary) receives a distribution in an amount equal to the donor's pro rata share of the fund's net investment income.
" At the death of the income beneficiary, the portion of the fund attributable to the donor's gift is severed from the fund and distributed to a charity or charities of the donor's choice.
In the year of contribution, the donor may be entitled to an income tax charitable deduction.
Contributions are treated as gifts to a public charity for purposes of the income tax deductibility limitations.
The pooled income fund may accept appreciated assets from a donor and sell the appreciated property without the donor incurring immediate recognition of capital gains. If the property is encumbered by debt, other rules apply. The gift to a pooled income fund qualifies for the charitable gift and estate tax deduction. However, gift or estate tax may be incurred if the income interest is payable to someone other than the donor or the donor's spouse.
The Arizona Pooled Income Fund with Declaration of Trust by Charitable Organization is an investment vehicle primarily used for charitable giving purposes. It is designed to provide individuals with a way to make contributions to charitable organizations while also enjoying potential investment income and tax benefits. The Arizona Pooled Income Fund allows donors to transfer assets, such as cash, stocks, or real estate, into a pooled fund managed by a charitable organization. The fund then invests these assets, and the income generated from the investments is distributed to the donors or other designated beneficiaries for their lifetime. Upon the death of the beneficiaries, the remaining assets in the fund are distributed to the designated charitable organizations. One of the main advantages of the Arizona Pooled Income Fund is the potential for immediate income tax deductions. By donating assets to the fund, donors may qualify for a charitable deduction on their income taxes, based on the present value of the future income stream generated by their contributions. Furthermore, the fund provides donors with the opportunity to diversify their investments and potentially earn higher returns compared to traditional charitable giving methods. The assets in the fund are managed by professional investment managers, who aim to maximize the investment income generated while preserving the principal. There are different types of Arizona Pooled Income Funds, each tailored to meet specific donor needs and goals. Some variations include: 1. General Arizona Pooled Income Fund: This is the most common type, allowing donors to contribute various types of assets to the fund. The income generated is distributed to the donors or other beneficiaries for life. 2. Charitable Remainder Unit rust (CUT): This type of Arizona Pooled Income Fund provides beneficiaries with a fixed percentage of the trust assets' fair market value each year. The value of the payout fluctuates based on the annual valuation of the trust assets. 3. Charitable Remainder Annuity Trust (CAT): In this variation, beneficiaries receive a fixed dollar amount from the trust each year, regardless of the trust asset's value. 4. Charitable Gift Annuity: While not technically a pooled income fund, this option also allows individuals to make charitable contributions in exchange for a fixed income for life. It is similar to a pooled income fund but managed by a specific charitable organization. Overall, the Arizona Pooled Income Fund with Declaration of Trust by Charitable Organization offers an effective way for individuals to support charitable causes while potentially receiving income benefits and favorable tax treatment. It is essential for donors to consult with professional advisors and familiarize themselves with the specific terms and conditions of each fund before making contributions.The Arizona Pooled Income Fund with Declaration of Trust by Charitable Organization is an investment vehicle primarily used for charitable giving purposes. It is designed to provide individuals with a way to make contributions to charitable organizations while also enjoying potential investment income and tax benefits. The Arizona Pooled Income Fund allows donors to transfer assets, such as cash, stocks, or real estate, into a pooled fund managed by a charitable organization. The fund then invests these assets, and the income generated from the investments is distributed to the donors or other designated beneficiaries for their lifetime. Upon the death of the beneficiaries, the remaining assets in the fund are distributed to the designated charitable organizations. One of the main advantages of the Arizona Pooled Income Fund is the potential for immediate income tax deductions. By donating assets to the fund, donors may qualify for a charitable deduction on their income taxes, based on the present value of the future income stream generated by their contributions. Furthermore, the fund provides donors with the opportunity to diversify their investments and potentially earn higher returns compared to traditional charitable giving methods. The assets in the fund are managed by professional investment managers, who aim to maximize the investment income generated while preserving the principal. There are different types of Arizona Pooled Income Funds, each tailored to meet specific donor needs and goals. Some variations include: 1. General Arizona Pooled Income Fund: This is the most common type, allowing donors to contribute various types of assets to the fund. The income generated is distributed to the donors or other beneficiaries for life. 2. Charitable Remainder Unit rust (CUT): This type of Arizona Pooled Income Fund provides beneficiaries with a fixed percentage of the trust assets' fair market value each year. The value of the payout fluctuates based on the annual valuation of the trust assets. 3. Charitable Remainder Annuity Trust (CAT): In this variation, beneficiaries receive a fixed dollar amount from the trust each year, regardless of the trust asset's value. 4. Charitable Gift Annuity: While not technically a pooled income fund, this option also allows individuals to make charitable contributions in exchange for a fixed income for life. It is similar to a pooled income fund but managed by a specific charitable organization. Overall, the Arizona Pooled Income Fund with Declaration of Trust by Charitable Organization offers an effective way for individuals to support charitable causes while potentially receiving income benefits and favorable tax treatment. It is essential for donors to consult with professional advisors and familiarize themselves with the specific terms and conditions of each fund before making contributions.
Para su conveniencia, debajo del texto en español le brindamos la versión completa de este formulario en inglés. For your convenience, the complete English version of this form is attached below the Spanish version.
