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 Harris Texas Pooled Income Fund with Declaration of Trust by Charitable Organization is a unique financial mechanism designed to benefit both donors and charitable causes in the state of Texas. This fund offers individuals the opportunity to make a meaningful and lasting impact, while also providing potential financial benefits for themselves or their designated beneficiaries. The Harris Texas Pooled Income Fund operates under a Declaration of Trust by a Charitable Organization, which outlines the terms and conditions of participation. This legally binding document ensures transparency, accountability, and the efficient management of funds for the benefit of charitable organizations. By contributing assets, such as cash, securities, or real estate, to the Harris Texas Pooled Income Fund, donors can receive several benefits. Firstly, they receive an immediate income tax deduction for the present value of the future charitable contributions to be made from the fund. This deduction can help reduce their overall tax liability. Secondly, donors or their beneficiaries are entitled to receive annual income payments from the fund. These payments, distributed in proportion to the donor's share of the fund, provide a steady stream of income throughout the donor's lifetime or a predetermined term. This feature can be particularly attractive for individuals seeking financial security and supplemental income during retirement. Additionally, the Harris Texas Pooled Income Fund offers the potential for growth through the investment of contributed assets. These assets are professionally managed, aiming to maximize returns while carefully considering the risk tolerance and income objectives of the fund's participants. It is important to note that the Harris Texas Pooled Income Fund is not a single entity but represents a range of different funds established by various charitable organizations in Harris County, Texas. Each fund typically has its own unique objectives, guidelines, and areas of focus. Some examples include funds dedicated to education, healthcare, environmental conservation, arts and culture, and social services. Overall, the Harris Texas Pooled Income Fund with Declaration of Trust by Charitable Organization provides an innovative and tax-efficient way for donors to support charitable causes while enjoying potential financial benefits. By participating in this unique fund, individuals can leave a lasting legacy and make a positive impact on their community, all while potentially enhancing their own financial well-being. Keywords: Harris Texas Pooled Income Fund, Declaration of Trust, Charitable Organization, financial mechanism, donors, assets, cash, securities, real estate, income tax deduction, income payments, retirement, investment, growth, professionally managed, risk tolerance, objectives, guidelines, education, healthcare, environmental conservation, arts and culture, social services, legacy, community.The Harris Texas Pooled Income Fund with Declaration of Trust by Charitable Organization is a unique financial mechanism designed to benefit both donors and charitable causes in the state of Texas. This fund offers individuals the opportunity to make a meaningful and lasting impact, while also providing potential financial benefits for themselves or their designated beneficiaries. The Harris Texas Pooled Income Fund operates under a Declaration of Trust by a Charitable Organization, which outlines the terms and conditions of participation. This legally binding document ensures transparency, accountability, and the efficient management of funds for the benefit of charitable organizations. By contributing assets, such as cash, securities, or real estate, to the Harris Texas Pooled Income Fund, donors can receive several benefits. Firstly, they receive an immediate income tax deduction for the present value of the future charitable contributions to be made from the fund. This deduction can help reduce their overall tax liability. Secondly, donors or their beneficiaries are entitled to receive annual income payments from the fund. These payments, distributed in proportion to the donor's share of the fund, provide a steady stream of income throughout the donor's lifetime or a predetermined term. This feature can be particularly attractive for individuals seeking financial security and supplemental income during retirement. Additionally, the Harris Texas Pooled Income Fund offers the potential for growth through the investment of contributed assets. These assets are professionally managed, aiming to maximize returns while carefully considering the risk tolerance and income objectives of the fund's participants. It is important to note that the Harris Texas Pooled Income Fund is not a single entity but represents a range of different funds established by various charitable organizations in Harris County, Texas. Each fund typically has its own unique objectives, guidelines, and areas of focus. Some examples include funds dedicated to education, healthcare, environmental conservation, arts and culture, and social services. Overall, the Harris Texas Pooled Income Fund with Declaration of Trust by Charitable Organization provides an innovative and tax-efficient way for donors to support charitable causes while enjoying potential financial benefits. By participating in this unique fund, individuals can leave a lasting legacy and make a positive impact on their community, all while potentially enhancing their own financial well-being. Keywords: Harris Texas Pooled Income Fund, Declaration of Trust, Charitable Organization, financial mechanism, donors, assets, cash, securities, real estate, income tax deduction, income payments, retirement, investment, growth, professionally managed, risk tolerance, objectives, guidelines, education, healthcare, environmental conservation, arts and culture, social services, legacy, community.
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.
