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 Cook Illinois Pooled Income Fund with Declaration of Trust by Charitable Organization is a unique investment vehicle designed to simultaneously benefit both donors and charitable organizations. This fund allows individuals to make tax-deductible contributions to a charitable organization while receiving a lifetime income stream. By contributing to the Cook Illinois Pooled Income Fund, donors become beneficiaries of the trust and receive regular payments based on the fund's income. These payments are typically made quarterly or on a schedule agreed upon by the donor and the charitable organization. One of the key benefits of participating in this fund is the immediate tax deduction received upon contributing to the trust. This deduction can help reduce the donor's overall tax liability. Additionally, any appreciated assets donated to the fund are exempt from capital gains taxes, further enhancing the tax advantages. It is important to note that the Cook Illinois Pooled Income Fund is administered by a qualified charitable organization, ensuring that the funds are managed responsibly and in accordance with regulatory requirements. This provides donors with peace of mind knowing that their contributions are being used effectively to support charitable causes. There are various types of Cook Illinois Pooled Income Fund options available, catering to different donor preferences. Some of these options may include: 1. Traditional Pooled Income Fund: This is the standard option where donors contribute cash, securities, or other assets to the fund, and in return, receive a regular income stream. 2. Charitable Remainder Unit rust (CUT): This type of fund allows donors to contribute assets and receive a variable income stream based on the trust's net fair market value. The income payments from a CUT can fluctuate depending on the performance of the fund's investments. 3. Charitable Remainder Annuity Trust (CAT): Similar to a CUT, a CAT allows donors to contribute assets and receive a fixed income stream based on a predetermined percentage of the initial contribution. The income payments from a CAT remain constant throughout the trust's existence. 4. Net Income with Makeup Charitable Remainder Unit rust (TIMEOUT): This fund allows donors to receive income payments based on the trust's net income, with the provision to make up for any shortfall in future years. These different options provide donors with flexibility in choosing the type of income stream that best suits their financial goals and philanthropic aspirations. In conclusion, the Cook Illinois Pooled Income Fund with Declaration of Trust by Charitable Organization is an innovative way for individuals to support charitable causes while also receiving financial benefits. Through various trust options, donors can tailor their contributions to align with their specific preferences. By participating in this fund, donors can make a meaningful impact on their communities while enjoying potential tax advantages and a steady income stream.The Cook Illinois Pooled Income Fund with Declaration of Trust by Charitable Organization is a unique investment vehicle designed to simultaneously benefit both donors and charitable organizations. This fund allows individuals to make tax-deductible contributions to a charitable organization while receiving a lifetime income stream. By contributing to the Cook Illinois Pooled Income Fund, donors become beneficiaries of the trust and receive regular payments based on the fund's income. These payments are typically made quarterly or on a schedule agreed upon by the donor and the charitable organization. One of the key benefits of participating in this fund is the immediate tax deduction received upon contributing to the trust. This deduction can help reduce the donor's overall tax liability. Additionally, any appreciated assets donated to the fund are exempt from capital gains taxes, further enhancing the tax advantages. It is important to note that the Cook Illinois Pooled Income Fund is administered by a qualified charitable organization, ensuring that the funds are managed responsibly and in accordance with regulatory requirements. This provides donors with peace of mind knowing that their contributions are being used effectively to support charitable causes. There are various types of Cook Illinois Pooled Income Fund options available, catering to different donor preferences. Some of these options may include: 1. Traditional Pooled Income Fund: This is the standard option where donors contribute cash, securities, or other assets to the fund, and in return, receive a regular income stream. 2. Charitable Remainder Unit rust (CUT): This type of fund allows donors to contribute assets and receive a variable income stream based on the trust's net fair market value. The income payments from a CUT can fluctuate depending on the performance of the fund's investments. 3. Charitable Remainder Annuity Trust (CAT): Similar to a CUT, a CAT allows donors to contribute assets and receive a fixed income stream based on a predetermined percentage of the initial contribution. The income payments from a CAT remain constant throughout the trust's existence. 4. Net Income with Makeup Charitable Remainder Unit rust (TIMEOUT): This fund allows donors to receive income payments based on the trust's net income, with the provision to make up for any shortfall in future years. These different options provide donors with flexibility in choosing the type of income stream that best suits their financial goals and philanthropic aspirations. In conclusion, the Cook Illinois Pooled Income Fund with Declaration of Trust by Charitable Organization is an innovative way for individuals to support charitable causes while also receiving financial benefits. Through various trust options, donors can tailor their contributions to align with their specific preferences. By participating in this fund, donors can make a meaningful impact on their communities while enjoying potential tax advantages and a steady income stream.
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.
