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 Texas Pooled Income Fund with Declaration of Trust by Charitable Organization is an innovative financial instrument designed to benefit both donors and charitable organizations in the state of Texas. With the goal of providing a steady income stream to donors while supporting charitable causes, this fund offers various types that cater to individual preferences and needs. One of the popular options within the Texas Pooled Income Fund is the Charitable Remainder Unit rust (CUT). This type of trust allows individuals to contribute assets, such as cash, stocks, or real estate, into a pooled fund managed by the charitable organization. In return, donors receive a variable income stream for their lifetime or a specified term, while the remaining assets are distributed to the designated charitable beneficiaries upon the donor's passing. Another type of Texas Pooled Income Fund is the Charitable Remainder Annuity Trust (CAT). Similar to the CUT, this trust allows individuals to donate assets and receive a fixed annual income for life or a set number of years. The remaining assets are then transferred to the charitable organization upon the donor's demise. The Declaration of Trust establishes the legal framework and guidelines governing the Texas Pooled Income Fund. It outlines the duties and responsibilities of the charitable organization managing the fund, ensuring transparency and compliance with state regulations. It also provides detailed instructions regarding the distribution of income, administration, and selection of charitable beneficiaries. The benefits of participating in the Texas Pooled Income Fund are numerous. Donors can enjoy potential tax deductions for their contributions, including capital gains tax savings, while also securing a lifelong income stream or ensuring financial certainty during a specified term. Additionally, by pooling resources with other donors, the fund can generate higher investment returns and provide greater support to charitable endeavors across Texas. Overall, the Texas Pooled Income Fund with Declaration of Trust by Charitable Organization offers individuals a unique opportunity to align their financial goals with philanthropic aspirations. Whether through a CUT or CAT, donors can contribute to meaningful causes while benefiting from income stability or flexibility. By utilizing this fund, donors can leave a lasting legacy and make a substantial impact on charitable organizations in Texas.The Texas Pooled Income Fund with Declaration of Trust by Charitable Organization is an innovative financial instrument designed to benefit both donors and charitable organizations in the state of Texas. With the goal of providing a steady income stream to donors while supporting charitable causes, this fund offers various types that cater to individual preferences and needs. One of the popular options within the Texas Pooled Income Fund is the Charitable Remainder Unit rust (CUT). This type of trust allows individuals to contribute assets, such as cash, stocks, or real estate, into a pooled fund managed by the charitable organization. In return, donors receive a variable income stream for their lifetime or a specified term, while the remaining assets are distributed to the designated charitable beneficiaries upon the donor's passing. Another type of Texas Pooled Income Fund is the Charitable Remainder Annuity Trust (CAT). Similar to the CUT, this trust allows individuals to donate assets and receive a fixed annual income for life or a set number of years. The remaining assets are then transferred to the charitable organization upon the donor's demise. The Declaration of Trust establishes the legal framework and guidelines governing the Texas Pooled Income Fund. It outlines the duties and responsibilities of the charitable organization managing the fund, ensuring transparency and compliance with state regulations. It also provides detailed instructions regarding the distribution of income, administration, and selection of charitable beneficiaries. The benefits of participating in the Texas Pooled Income Fund are numerous. Donors can enjoy potential tax deductions for their contributions, including capital gains tax savings, while also securing a lifelong income stream or ensuring financial certainty during a specified term. Additionally, by pooling resources with other donors, the fund can generate higher investment returns and provide greater support to charitable endeavors across Texas. Overall, the Texas Pooled Income Fund with Declaration of Trust by Charitable Organization offers individuals a unique opportunity to align their financial goals with philanthropic aspirations. Whether through a CUT or CAT, donors can contribute to meaningful causes while benefiting from income stability or flexibility. By utilizing this fund, donors can leave a lasting legacy and make a substantial impact on charitable organizations in Texas.
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.
