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.
Louisiana Pooled Income Fund with Declaration of Trust by Charitable Organization refers to a specific type of financial arrangement established by charitable organizations in the state of Louisiana. This fund allows individuals to make charitable donations and receive income for life, while also benefiting the identified charitable organization. The Louisiana Pooled Income Fund operates under a Declaration of Trust, which outlines the terms and conditions of the fund. This legally binding document helps ensure that the fund is managed in accordance with the intentions and guidelines established by the charitable organization. The primary aim of Louisiana Pooled Income Fund with Declaration of Trust by Charitable Organization is to provide a way for individuals to contribute to philanthropic causes, while also maintaining a stream of income during their lifetime. The fund allows donors to make irrevocable contributions, which are combined and invested for growth over time. The income generated from these investments is then distributed to the income beneficiaries on a regular basis. Depending on the terms specified in the Declaration of Trust, this distribution can be paid out annually, semi-annually, quarterly, or on another predetermined schedule. It is important to note that the specific details of the Louisiana Pooled Income Fund can vary depending on the charitable organization managing the fund and the specific Declaration of Trust established. Different organizations may have different requirements for contributions, minimum investment amounts, and rules for distribution. Some potential variations or types of Louisiana Pooled Income Fund with Declaration of Trust by Charitable Organization may include: 1. Generalized Pooled Income Fund: This is the most common type of Louisiana Pooled Income Fund, in which donors contribute to a pool of assets that are collectively invested. The income generated is then distributed among the income beneficiaries based on their share in the pool. 2. Restricted Pooled Income Fund: Some charitable organizations may establish restricted pooled income funds, which specify that the income generated from the contributions should be used for a particular cause or program. For example, a fund may be restricted to support educational scholarships or medical research. 3. Named Pooled Income Fund: In some cases, donors may establish a pooled income fund that is named after themselves or their family. This allows them to leave a lasting legacy and ensure ongoing support for their chosen charitable causes. 4. Qualified Pooled Income Fund: A qualified pooled income fund refers to a fund that meets certain criteria set by the Internal Revenue Service (IRS). By meeting these requirements, donors may be eligible for various tax benefits, such as income tax deductions or reduced capital gains taxes. Overall, the Louisiana Pooled Income Fund with Declaration of Trust by Charitable Organization provides donors with a unique opportunity to support philanthropic causes while also receiving an income stream during their lifetime. The specific terms and benefits of the fund can vary depending on the charitable organization and the specific Declaration of Trust established.
