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.
Rhode Island Pooled Income Fund with Declaration of Trust by Charitable Organization is a philanthropic vehicle designed to help individuals contribute to charitable causes while also earning income for themselves or their beneficiaries. This specialized fund allows residents of Rhode Island to establish a trust that combines their charitable intentions with the benefits of a pooled income investment strategy. The Rhode Island Pooled Income Fund with Declaration of Trust by Charitable Organization offers individuals various types of trusts to suit their personal preferences and financial goals. Some of these different types include: 1. Charitable Remainder Unit rust (CUT): A CUT provides income to the donor or beneficiaries for a specified period or their lifetime. After the trust term ends, the remaining assets are directed to the chosen charitable organization(s). The income generated from the trust is typically distributed annually and can be based on a fixed percentage or the trust's annual valuation. 2. Charitable Remainder Annuity Trust (CAT): Cats provide a fixed annual income to the donor or beneficiaries, regardless of the trust's investment performance. Like Cuts, the remaining assets are transferred to the designated charitable organization(s) after the trust term expires. 3. Testamentary Pooled Income Fund: This type of trust is established through provisions within a will and takes effect upon the donor's passing. Testamentary Pooled Income Funds allow individuals to include charitable giving as a part of their estate plan while still receiving income benefits during their lifetime. Establishing a Rhode Island Pooled Income Fund with Declaration of Trust by Charitable Organization offers several advantages. Firstly, it enables individuals to make a significant impact on charitable organizations that align with their values and causes. By pooling assets with other donors, the fund can generate greater investment returns, resulting in higher income distributions to beneficiaries. Moreover, donors may receive certain tax benefits when participating in a Rhode Island Pooled Income Fund with Declaration of Trust by Charitable Organization. Depending on the donor's specific circumstances, they may be eligible for income tax deductions for the present value of the charitable remainder interest. Furthermore, certain trust assets may be exempt from capital gains tax upon contribution. It's important for individuals considering a Rhode Island Pooled Income Fund with Declaration of Trust by Charitable Organization to consult with an experienced estate planning attorney or financial advisor. They can provide personalized guidance and help select the most appropriate trust option based on the donor's goals, financial situation, and preferred charitable beneficiaries.Rhode Island Pooled Income Fund with Declaration of Trust by Charitable Organization is a philanthropic vehicle designed to help individuals contribute to charitable causes while also earning income for themselves or their beneficiaries. This specialized fund allows residents of Rhode Island to establish a trust that combines their charitable intentions with the benefits of a pooled income investment strategy. The Rhode Island Pooled Income Fund with Declaration of Trust by Charitable Organization offers individuals various types of trusts to suit their personal preferences and financial goals. Some of these different types include: 1. Charitable Remainder Unit rust (CUT): A CUT provides income to the donor or beneficiaries for a specified period or their lifetime. After the trust term ends, the remaining assets are directed to the chosen charitable organization(s). The income generated from the trust is typically distributed annually and can be based on a fixed percentage or the trust's annual valuation. 2. Charitable Remainder Annuity Trust (CAT): Cats provide a fixed annual income to the donor or beneficiaries, regardless of the trust's investment performance. Like Cuts, the remaining assets are transferred to the designated charitable organization(s) after the trust term expires. 3. Testamentary Pooled Income Fund: This type of trust is established through provisions within a will and takes effect upon the donor's passing. Testamentary Pooled Income Funds allow individuals to include charitable giving as a part of their estate plan while still receiving income benefits during their lifetime. Establishing a Rhode Island Pooled Income Fund with Declaration of Trust by Charitable Organization offers several advantages. Firstly, it enables individuals to make a significant impact on charitable organizations that align with their values and causes. By pooling assets with other donors, the fund can generate greater investment returns, resulting in higher income distributions to beneficiaries. Moreover, donors may receive certain tax benefits when participating in a Rhode Island Pooled Income Fund with Declaration of Trust by Charitable Organization. Depending on the donor's specific circumstances, they may be eligible for income tax deductions for the present value of the charitable remainder interest. Furthermore, certain trust assets may be exempt from capital gains tax upon contribution. It's important for individuals considering a Rhode Island Pooled Income Fund with Declaration of Trust by Charitable Organization to consult with an experienced estate planning attorney or financial advisor. They can provide personalized guidance and help select the most appropriate trust option based on the donor's goals, financial situation, and preferred charitable beneficiaries.
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.
