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 New Hampshire Pooled Income Fund with Declaration of Trust by Charitable Organization is a unique financial tool designed to support philanthropic efforts within the state of New Hampshire. This fund is established by charitable organizations with the goal of pooling together various contributions from donors to generate income for both charitable purposes and the income beneficiaries. Through the fund, individuals can make a charitable contribution while still receiving regular income generated from the fund's investments. The New Hampshire Pooled Income Fund with Declaration of Trust by Charitable Organization offers multiple types to cater to different needs and preferences. These include the Revocable Pooled Income Fund with Declaration of Trust, the Irrevocable Pooled Income Fund with Declaration of Trust, and the Testamentary Pooled Income Fund with Declaration of Trust. The Revocable Pooled Income Fund with Declaration of Trust allows donors to retain control over their contributions and make changes if needed. This gives them flexibility while still enjoying the benefits of potential income generated by the fund. The Irrevocable Pooled Income Fund with Declaration of Trust, on the other hand, provides the opportunity for donors to receive an immediate charitable deduction. Once contributions are made to this fund, they cannot be altered or revoked. However, the income beneficiaries will still benefit from the generated income throughout their lifetimes. Lastly, the Testamentary Pooled Income Fund with Declaration of Trust allows individuals to designate their contributions through their wills or trusts. This type of fund allows donors to leave a lasting legacy and provide ongoing support to charitable causes even after their passing. With the New Hampshire Pooled Income Fund with Declaration of Trust by Charitable Organization, donors have the opportunity to make a difference in their community while potentially receiving income for themselves or their chosen beneficiaries. By pooling funds together, the charitable organization managing the trust can invest in a diversified portfolio to generate income and contribute towards a wide range of meaningful causes. This fund serves as a powerful financial tool that allows individuals to create an impact while still enjoying the benefits of income generated from their contributions.
