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.
Pennsylvania Pooled Income Fund with Declaration of Trust by Charitable Organization The Pennsylvania Pooled Income Fund with Declaration of Trust by Charitable Organization is a unique financial instrument that allows individuals to donate income-generating assets to charitable organizations while still earning income from those assets during their lifetime. This innovative fund functions by pooling the assets of multiple donors into one fund, managed and invested by a charitable organization. Donors are then awarded units or shares in the fund based on the value of their contribution. The income generated by these pooled assets is distributed to the donors in proportion to their ownership stake. The donors receive payments (typically on a quarterly or annual basis) reflecting their shares of the fund's income. One of the key benefits of participating in the Pennsylvania Pooled Income Fund is the immediate tax deduction donors receive for their charitable contribution. Since the assets are given to a qualified charitable organization, donors can claim a deduction in the year of the gift, based on the fair market value of the assets. This deduction can help reduce current tax liability. It is important to mention that the Pennsylvania Pooled Income Fund with Declaration of Trust by Charitable Organization may have different variations or types depending on the specific organization offering the fund. Some possible variations include: 1. General Pooled Income Fund: This is the standard type of pooled income fund where individuals can donate a wide range of assets, such as cash, marketable securities, or real estate. 2. Specialized Pooled Income Fund: Some charitable organizations may offer specialized pooled income funds that focus on specific types of assets or industries. For example, there may be a fund exclusively for donations of stocks or bonds. 3. Charitable Remainder Pooled Income Fund: This type of fund allows donors to contribute assets while retaining an income interest for their lifetime or a specified term. After the donor's lifetime or term, the remaining assets in the fund are distributed to the designated charitable organization. By participating in a Pennsylvania Pooled Income Fund with Declaration of Trust by Charitable Organization, donors can support their favorite charitable causes while maintaining a stream of income to support their own financial needs. This arrangement allows individuals to make a lasting impact and promote philanthropy while potentially enjoying tax benefits during their lifetime.Pennsylvania Pooled Income Fund with Declaration of Trust by Charitable Organization The Pennsylvania Pooled Income Fund with Declaration of Trust by Charitable Organization is a unique financial instrument that allows individuals to donate income-generating assets to charitable organizations while still earning income from those assets during their lifetime. This innovative fund functions by pooling the assets of multiple donors into one fund, managed and invested by a charitable organization. Donors are then awarded units or shares in the fund based on the value of their contribution. The income generated by these pooled assets is distributed to the donors in proportion to their ownership stake. The donors receive payments (typically on a quarterly or annual basis) reflecting their shares of the fund's income. One of the key benefits of participating in the Pennsylvania Pooled Income Fund is the immediate tax deduction donors receive for their charitable contribution. Since the assets are given to a qualified charitable organization, donors can claim a deduction in the year of the gift, based on the fair market value of the assets. This deduction can help reduce current tax liability. It is important to mention that the Pennsylvania Pooled Income Fund with Declaration of Trust by Charitable Organization may have different variations or types depending on the specific organization offering the fund. Some possible variations include: 1. General Pooled Income Fund: This is the standard type of pooled income fund where individuals can donate a wide range of assets, such as cash, marketable securities, or real estate. 2. Specialized Pooled Income Fund: Some charitable organizations may offer specialized pooled income funds that focus on specific types of assets or industries. For example, there may be a fund exclusively for donations of stocks or bonds. 3. Charitable Remainder Pooled Income Fund: This type of fund allows donors to contribute assets while retaining an income interest for their lifetime or a specified term. After the donor's lifetime or term, the remaining assets in the fund are distributed to the designated charitable organization. By participating in a Pennsylvania Pooled Income Fund with Declaration of Trust by Charitable Organization, donors can support their favorite charitable causes while maintaining a stream of income to support their own financial needs. This arrangement allows individuals to make a lasting impact and promote philanthropy while potentially enjoying tax benefits during their lifetime.
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.
