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 South Carolina Pooled Income Fund with Declaration of Trust by Charitable Organization is a unique financial investment option that allows individuals to donate assets to a charitable organization while still receiving income from their donation. This trust fund operates based on a declaration of trust and is specifically designed to benefit charitable causes. The South Carolina Pooled Income Fund offers several types of funds for individuals to choose from, allowing them to align their investment with causes they are passionate about. These types include: 1. General Pooled Income Fund: This type of fund allows donors to contribute to a pool of assets, which are then invested to generate income for both the donor and the charitable organization. The income generated is typically distributed to the donor as a fixed percentage throughout their lifetime, providing them with a steady income stream. 2. Designated Pooled Income Fund: With this option, donors have the ability to specify a particular charitable organization or cause that they wish to support. The income generated from the designated assets will then be directed to the chosen organization. 3. Restricted Pooled Income Fund: This type of fund is established to support a specific purpose or project within a charitable organization. Donors can contribute to this fund, knowing that their assets will be utilized solely for the designated purpose, such as funding scholarships or supporting research initiatives. 4. Unrestricted Pooled Income Fund: This fund is intended to provide flexible support to a charitable organization. Donors who contribute to this fund allow the organization to utilize the generated income for various purposes based on their current needs. The declaration of trust is a legal document that outlines the terms and conditions of the South Carolina Pooled Income Fund. It covers aspects such as asset management, income distribution, donor rights, and trustee responsibilities. This document safeguards the interests of both donors and the charitable organization, ensuring transparency and accountability in managing the fund. By participating in the South Carolina Pooled Income Fund with Declaration of Trust by Charitable Organization, individuals can make a lasting impact on their community while also benefiting financially. It offers the opportunity to support meaningful causes, diversify financial investments, and receive tax benefits based on individual circumstances.The South Carolina Pooled Income Fund with Declaration of Trust by Charitable Organization is a unique financial investment option that allows individuals to donate assets to a charitable organization while still receiving income from their donation. This trust fund operates based on a declaration of trust and is specifically designed to benefit charitable causes. The South Carolina Pooled Income Fund offers several types of funds for individuals to choose from, allowing them to align their investment with causes they are passionate about. These types include: 1. General Pooled Income Fund: This type of fund allows donors to contribute to a pool of assets, which are then invested to generate income for both the donor and the charitable organization. The income generated is typically distributed to the donor as a fixed percentage throughout their lifetime, providing them with a steady income stream. 2. Designated Pooled Income Fund: With this option, donors have the ability to specify a particular charitable organization or cause that they wish to support. The income generated from the designated assets will then be directed to the chosen organization. 3. Restricted Pooled Income Fund: This type of fund is established to support a specific purpose or project within a charitable organization. Donors can contribute to this fund, knowing that their assets will be utilized solely for the designated purpose, such as funding scholarships or supporting research initiatives. 4. Unrestricted Pooled Income Fund: This fund is intended to provide flexible support to a charitable organization. Donors who contribute to this fund allow the organization to utilize the generated income for various purposes based on their current needs. The declaration of trust is a legal document that outlines the terms and conditions of the South Carolina Pooled Income Fund. It covers aspects such as asset management, income distribution, donor rights, and trustee responsibilities. This document safeguards the interests of both donors and the charitable organization, ensuring transparency and accountability in managing the fund. By participating in the South Carolina Pooled Income Fund with Declaration of Trust by Charitable Organization, individuals can make a lasting impact on their community while also benefiting financially. It offers the opportunity to support meaningful causes, diversify financial investments, and receive tax benefits based on individual circumstances.
