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 Georgia Pooled Income Fund with Declaration of Trust is a unique investment vehicle implemented by charitable organizations in the state of Georgia. This fund allows individuals to make charitable contributions while benefiting from a potential income stream during their lifetime. By contributing to the Georgia Pooled Income Fund, donors can support their desired charities while also gaining financial advantages. The Georgia Pooled Income Fund operates under a Declaration of Trust, which outlines the specific terms and conditions of the fund. This legally binding document sets forth the rules and regulations governing the fund's management, investment strategies, income distribution, and eligibility requirements. Charitable organizations in Georgia offer various types of Pooled Income Funds. Some common variations include: 1. General Georgia Pooled Income Fund: This type of fund accepts contributions from multiple donors and pools them together to generate income. The earnings are then distributed among the donors based on their proportional share of the fund. 2. Restricted Georgia Pooled Income Fund: Some charitable organizations may establish restricted Pooled Income Funds that focus on a specific cause or area of interest. Donors can contribute to these funds to support specialized initiatives or projects. 3. Revocable Georgia Pooled Income Fund: This type of fund allows donors to retain control over their contributions during their lifetime. Donors can make changes or revoke their contributions, providing flexibility in managing their assets. 4. Irrevocable Georgia Pooled Income Fund: Unlike the revocable fund, irrevocable Pooled Income Funds do not allow donors to revoke or make changes to their contributions once they are made. This ensures long-term support for the chosen charitable organizations. By participating in a Georgia Pooled Income Fund, donors may enjoy multiple benefits. They receive an income tax deduction for their contribution, based on the present value of the charitable remainder interest. Additionally, donors may avoid capital gains taxes on appreciated assets contributed to the fund. It is important to note that the specific details and offerings of Georgia Pooled Income Funds may vary among different charitable organizations. Therefore, potential donors should thoroughly review the terms and conditions, as stated in the Declaration of Trust, before making any contributions. Overall, the Georgia Pooled Income Fund with Declaration of Trust by Charitable Organization provides individuals with a structured and tax-efficient way to support charitable causes while potentially realizing a lifetime income stream.The Georgia Pooled Income Fund with Declaration of Trust is a unique investment vehicle implemented by charitable organizations in the state of Georgia. This fund allows individuals to make charitable contributions while benefiting from a potential income stream during their lifetime. By contributing to the Georgia Pooled Income Fund, donors can support their desired charities while also gaining financial advantages. The Georgia Pooled Income Fund operates under a Declaration of Trust, which outlines the specific terms and conditions of the fund. This legally binding document sets forth the rules and regulations governing the fund's management, investment strategies, income distribution, and eligibility requirements. Charitable organizations in Georgia offer various types of Pooled Income Funds. Some common variations include: 1. General Georgia Pooled Income Fund: This type of fund accepts contributions from multiple donors and pools them together to generate income. The earnings are then distributed among the donors based on their proportional share of the fund. 2. Restricted Georgia Pooled Income Fund: Some charitable organizations may establish restricted Pooled Income Funds that focus on a specific cause or area of interest. Donors can contribute to these funds to support specialized initiatives or projects. 3. Revocable Georgia Pooled Income Fund: This type of fund allows donors to retain control over their contributions during their lifetime. Donors can make changes or revoke their contributions, providing flexibility in managing their assets. 4. Irrevocable Georgia Pooled Income Fund: Unlike the revocable fund, irrevocable Pooled Income Funds do not allow donors to revoke or make changes to their contributions once they are made. This ensures long-term support for the chosen charitable organizations. By participating in a Georgia Pooled Income Fund, donors may enjoy multiple benefits. They receive an income tax deduction for their contribution, based on the present value of the charitable remainder interest. Additionally, donors may avoid capital gains taxes on appreciated assets contributed to the fund. It is important to note that the specific details and offerings of Georgia Pooled Income Funds may vary among different charitable organizations. Therefore, potential donors should thoroughly review the terms and conditions, as stated in the Declaration of Trust, before making any contributions. Overall, the Georgia Pooled Income Fund with Declaration of Trust by Charitable Organization provides individuals with a structured and tax-efficient way to support charitable causes while potentially realizing a lifetime income stream.
