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 District of Columbia Pooled Income Fund with Declaration of Trust by Charitable Organization is an entity specifically created to provide a unique and efficient way for individuals to make charitable contributions while also receiving income from their donations. This type of fund is governed by a legal document known as the Declaration of Trust, which outlines the rules and guidelines for its operation. The District of Columbia Pooled Income Fund offers several types of funds that cater to various philanthropic preferences. These distinct funds include: 1. General Pooled Income Fund: This is the most common type of fund offered by charitable organizations in the District of Columbia. It allows individuals to contribute assets such as cash, securities, or real estate into a pool alongside other donors. The income generated by these pooled assets is then distributed to individual participants based on their respective share of the fund. 2. Specialized Pooled Income Fund: This type of fund allows donors to specify their contributions to support a particular cause or organization of their choice. By allocating their donations to a specific area of interest, such as education, healthcare, or the environment, donors can ensure that their funds directly benefit the causes they are passionate about. 3. Donor-Advised Pooled Income Fund: This fund provides a unique opportunity for donors to have greater involvement in the decision-making process of how their contributions are distributed. Donors who opt for this type of fund can provide recommendations to the charitable organization regarding which organizations or causes should receive grants from the pooled income. The District of Columbia Pooled Income Fund with Declaration of Trust by Charitable Organization is a powerful tool that allows individuals to create a lasting impact for the causes they care about while enjoying financial benefits. By participating in this type of fund, donors can support charitable organizations and receive a steady income stream from their contributions.The District of Columbia Pooled Income Fund with Declaration of Trust by Charitable Organization is an entity specifically created to provide a unique and efficient way for individuals to make charitable contributions while also receiving income from their donations. This type of fund is governed by a legal document known as the Declaration of Trust, which outlines the rules and guidelines for its operation. The District of Columbia Pooled Income Fund offers several types of funds that cater to various philanthropic preferences. These distinct funds include: 1. General Pooled Income Fund: This is the most common type of fund offered by charitable organizations in the District of Columbia. It allows individuals to contribute assets such as cash, securities, or real estate into a pool alongside other donors. The income generated by these pooled assets is then distributed to individual participants based on their respective share of the fund. 2. Specialized Pooled Income Fund: This type of fund allows donors to specify their contributions to support a particular cause or organization of their choice. By allocating their donations to a specific area of interest, such as education, healthcare, or the environment, donors can ensure that their funds directly benefit the causes they are passionate about. 3. Donor-Advised Pooled Income Fund: This fund provides a unique opportunity for donors to have greater involvement in the decision-making process of how their contributions are distributed. Donors who opt for this type of fund can provide recommendations to the charitable organization regarding which organizations or causes should receive grants from the pooled income. The District of Columbia Pooled Income Fund with Declaration of Trust by Charitable Organization is a powerful tool that allows individuals to create a lasting impact for the causes they care about while enjoying financial benefits. By participating in this type of fund, donors can support charitable organizations and receive a steady income stream from their contributions.
