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 Lima Arizona Pooled Income Fund with Declaration of Trust by Charitable Organization is a charitable program that enables individuals to make a meaningful impact through their financial contributions. By understanding the various types of Lima Arizona Pooled Income Funds, individuals can choose the one that aligns with their philanthropic goals and financial needs. One type of Lima Arizona Pooled Income Fund is the Charitable Remainder Unit rust (CUT). This fund allows donors to place assets such as cash, stocks, or real estate into a trust, which is professionally managed by the charitable organization. The trust pays out income to the donor or designated beneficiaries for a specific time period, typically for life or a fixed term. Afterward, the remaining assets are transferred to the organization to support charitable activities, such as education, medical research, or community development. Another type of Lima Arizona Pooled Income Fund is the Charitable Remainder Annuity Trust (CAT). Similar to the CUT, this fund also involves placing assets into a trust and distributing income to the donor or beneficiaries. However, the CAT provides a fixed annual income that does not vary with changes in asset value. This can be a preferred option for individuals who prefer a predictable income stream. The Lima Arizona Pooled Income Fund also offers the Charitable Gift Annuity (CGA). In this arrangement, donors make a charitable gift to the organization in exchange for guaranteed lifetime payments. These payments are determined by factors such as the donor's age and the size of the gift. The remaining amount after the donor's passing is utilized to support the organization's charitable endeavors. Additionally, the Lima Arizona Pooled Income Fund with Declaration of Trust by Charitable Organization ensures that the assets are managed professionally, allowing for potential growth and income generation. This allows donors to contribute to the charitable cause without worrying about investment responsibilities. By participating in the Lima Arizona Pooled Income Fund, individuals can support their preferred charitable causes while benefiting from potential tax advantages. It is essential to consult with financial and legal advisors to fully understand the specifics of each type of fund and how it aligns with personal financial goals and charitable intentions. Keywords: Lima Arizona Pooled Income Fund, Declaration of Trust, Charitable Organization, Charitable Remainder Unit rust, CUT, Charitable Remainder Annuity Trust, CAT, Charitable Gift Annuity, CGA, financial contributions, philanthropic goals, predictable income stream, tax advantages.The Lima Arizona Pooled Income Fund with Declaration of Trust by Charitable Organization is a charitable program that enables individuals to make a meaningful impact through their financial contributions. By understanding the various types of Lima Arizona Pooled Income Funds, individuals can choose the one that aligns with their philanthropic goals and financial needs. One type of Lima Arizona Pooled Income Fund is the Charitable Remainder Unit rust (CUT). This fund allows donors to place assets such as cash, stocks, or real estate into a trust, which is professionally managed by the charitable organization. The trust pays out income to the donor or designated beneficiaries for a specific time period, typically for life or a fixed term. Afterward, the remaining assets are transferred to the organization to support charitable activities, such as education, medical research, or community development. Another type of Lima Arizona Pooled Income Fund is the Charitable Remainder Annuity Trust (CAT). Similar to the CUT, this fund also involves placing assets into a trust and distributing income to the donor or beneficiaries. However, the CAT provides a fixed annual income that does not vary with changes in asset value. This can be a preferred option for individuals who prefer a predictable income stream. The Lima Arizona Pooled Income Fund also offers the Charitable Gift Annuity (CGA). In this arrangement, donors make a charitable gift to the organization in exchange for guaranteed lifetime payments. These payments are determined by factors such as the donor's age and the size of the gift. The remaining amount after the donor's passing is utilized to support the organization's charitable endeavors. Additionally, the Lima Arizona Pooled Income Fund with Declaration of Trust by Charitable Organization ensures that the assets are managed professionally, allowing for potential growth and income generation. This allows donors to contribute to the charitable cause without worrying about investment responsibilities. By participating in the Lima Arizona Pooled Income Fund, individuals can support their preferred charitable causes while benefiting from potential tax advantages. It is essential to consult with financial and legal advisors to fully understand the specifics of each type of fund and how it aligns with personal financial goals and charitable intentions. Keywords: Lima Arizona Pooled Income Fund, Declaration of Trust, Charitable Organization, Charitable Remainder Unit rust, CUT, Charitable Remainder Annuity Trust, CAT, Charitable Gift Annuity, CGA, financial contributions, philanthropic goals, predictable income stream, tax advantages.
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.
