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.
Kansas Pooled Income Fund with Declaration of Trust by Charitable Organization is a unique financial tool offered by charitable organizations in Kansas. This fund allows individuals to make philanthropic contributions while receiving income generated from their donations. By establishing a pooled income fund, donors can support charitable causes and receive a regular income stream. The Kansas Pooled Income Fund with Declaration of Trust by Charitable Organization works by pooling the contributions of multiple donors into a single fund, which is then invested by the charitable organization. The income generated from these investments is distributed among the donors in proportion to their contributions. One of the main advantages of the Kansas Pooled Income Fund is that it provides donors with a tax deduction for their contribution to the fund, which can be a valuable incentive for individuals looking to support charitable causes. This deduction can help reduce an individual's overall tax liability, potentially resulting in significant tax savings. There are different types of Kansas Pooled Income Funds with Declaration of Trust by Charitable Organization that donors can choose from, based on their specific needs and preferences. Some of these include: 1. General Pooled Income Fund: This fund allows donors to make unrestricted contributions, which can be directed towards general charitable purposes decided by the charitable organization. 2. Designated Pooled Income Fund: With this type of fund, donors have the option to specify a particular charitable purpose or organization they would like their donations to support. This provides a more targeted and personalized approach to philanthropy. 3. Diversionary Pooled Income Fund: In a diversionary pooled income fund, donors have the possibility to name beneficiaries who will receive the remaining assets in the fund after their lifetime. This allows donors to leave a lasting impact on their chosen charitable organization. In summary, the Kansas Pooled Income Fund with Declaration of Trust by Charitable Organization offers individuals a flexible and tax-efficient way to support charitable causes while still receiving an income stream. With various types of funds available, donors can choose the one that aligns with their philanthropic goals and make a meaningful difference in the community.
