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 Franklin Ohio Pooled Income Fund with Declaration of Trust by Charitable Organization is a unique investment vehicle designed to help individuals and families support charitable causes while receiving income and tax benefits in return. The Fund operates under the guidance and oversight of a charitable organization, making it an excellent choice for those looking to make a lasting impact on their community. The Franklin Ohio Pooled Income Fund offers several types of trust options to cater to varying needs and objectives. These include: 1. Charitable Remainder Unit rust (CUT): A CUT is a type of trust where an individual contributes assets, such as cash, stocks, or real estate, to the Fund. The Fund then invests these assets and pays the donor or specified beneficiaries a fixed percentage of the trust's value annually. Upon the donor's passing or a specified timeframe, the remaining assets are distributed to the designated charitable organization(s). 2. Charitable Remainder Annuity Trust (CAT): A CAT follows a similar structure to a CUT but provides a fixed annual payment to the donor or beneficiaries, which does not fluctuate based on the trust's performance. This type of trust is ideal for individuals who prefer a predictable income stream. 3. Pooled Income Fund (PIF): A Pooled Income Fund combines the assets and contributions from multiple donors into a single fund, managed by the charitable organization. Donors receive a pro rata share of the fund's income based on their contribution and the Fund's performance. This allows for diversification and potentially higher investment returns. Regardless of the specific type of Franklin Ohio Pooled Income Fund chosen, there are several benefits worth considering: 1. Tax Benefits: Contributions to the Fund can qualify as charitable deductions on income taxes, potentially reducing the donor's taxable income and providing valuable tax savings. 2. Income Stream: Donors or named beneficiaries receive regular income payments from the trust, providing financial security while supporting charitable causes. 3. Professional Fund Management: The pooled nature of the Fund allows for professional investment management, potentially achieving higher investment returns compared to individual investments. 4. Charitable Legacy: By establishing a Franklin Ohio Pooled Income Fund, donors can leave a lasting impact on their community and support the causes they care about long after they are gone. In conclusion, the Franklin Ohio Pooled Income Fund with Declaration of Trust by Charitable Organization offers individuals and families a powerful tool to generate income, receive tax benefits, and make a positive difference in their community. With different types of trust options available, individuals can choose the structure that best aligns with their financial goals and philanthropic aspirations.The Franklin Ohio Pooled Income Fund with Declaration of Trust by Charitable Organization is a unique investment vehicle designed to help individuals and families support charitable causes while receiving income and tax benefits in return. The Fund operates under the guidance and oversight of a charitable organization, making it an excellent choice for those looking to make a lasting impact on their community. The Franklin Ohio Pooled Income Fund offers several types of trust options to cater to varying needs and objectives. These include: 1. Charitable Remainder Unit rust (CUT): A CUT is a type of trust where an individual contributes assets, such as cash, stocks, or real estate, to the Fund. The Fund then invests these assets and pays the donor or specified beneficiaries a fixed percentage of the trust's value annually. Upon the donor's passing or a specified timeframe, the remaining assets are distributed to the designated charitable organization(s). 2. Charitable Remainder Annuity Trust (CAT): A CAT follows a similar structure to a CUT but provides a fixed annual payment to the donor or beneficiaries, which does not fluctuate based on the trust's performance. This type of trust is ideal for individuals who prefer a predictable income stream. 3. Pooled Income Fund (PIF): A Pooled Income Fund combines the assets and contributions from multiple donors into a single fund, managed by the charitable organization. Donors receive a pro rata share of the fund's income based on their contribution and the Fund's performance. This allows for diversification and potentially higher investment returns. Regardless of the specific type of Franklin Ohio Pooled Income Fund chosen, there are several benefits worth considering: 1. Tax Benefits: Contributions to the Fund can qualify as charitable deductions on income taxes, potentially reducing the donor's taxable income and providing valuable tax savings. 2. Income Stream: Donors or named beneficiaries receive regular income payments from the trust, providing financial security while supporting charitable causes. 3. Professional Fund Management: The pooled nature of the Fund allows for professional investment management, potentially achieving higher investment returns compared to individual investments. 4. Charitable Legacy: By establishing a Franklin Ohio Pooled Income Fund, donors can leave a lasting impact on their community and support the causes they care about long after they are gone. In conclusion, the Franklin Ohio Pooled Income Fund with Declaration of Trust by Charitable Organization offers individuals and families a powerful tool to generate income, receive tax benefits, and make a positive difference in their community. With different types of trust options available, individuals can choose the structure that best aligns with their financial goals and philanthropic aspirations.
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.
