Pooled Income Fund
A pooled income fund combines and invests contributions from several donors, allowing your gift to grow alongside others while providing life income to the named income beneficiaries.
What Is A Pooled Income Fund?
A pooled income fund (PIF) is an irrevocable trust managed by a public charity where the gifts are combined and invested together.
Your contribution not only generates an income stream for designated beneficiaries, but the contribution produces valuable income and transfer tax benefits.
We’re happy to help you determine if a pooled income fund is right for you.
How Pooled Income Funds Work
Reduced Tax Costs
Contributing appreciated assets to a pooled income fund avoids capital gain tax on the sale while providing life income to the named income beneficiaries. The contribution to the fund produces a generous income tax charitable deduction.
Charitable Impact For Modest Investors
A pooled income fund creates giving opportunities for modest investors, and allows them to designate the use of the funds by a charitable organization after expiration of the income interest.
Diverse Assets Can Be Pooled
Irrevocable gifts from separate donors are commingled for investment purposes. Gifts are typically cash or securities, although some pooled income funds may accept other types of property.
Charitable Mindset, Modest Investments
Pooled income funds are ideal for donors who want to make an impact but have a modest investment to contribute.
Lifetime Cash Flow
Pooled income funds provide lifetime cash flow by producing income in the form of dividends, interest, and other earnings.
Cash And/Or Securities Donation
Pooled income funds allow you to donate cash or appreciated securities. It’s important to note that you cannot give or hold tax-exempt securities.
What Can You Do With a Pooled Income Fund
By contributing to a pooled income fund, you secure lifetime income and significant tax advantages in exchange for gifting your chosen charity.
Pooled Income Fund Guide
Feeling overwhelmed by the terms we’re throwing at you? The pooled income fund terminology guide provides a breakdown of the various terms associated with pooled income funds.
Charitable Giving In The Era Of High Interest Rates
Learn about the benefits of split-income charitable gifts during high interest periods.
Ideal Donor Profile
Modest Investors
Donors who have a desire to benefit charity, but have a modest investment to contribute.
Prefers Simplicity And Professional Management
The pooled income fund is already established and professionally managed by the public charity, meaning there is no need for you to set up and administer a separate trust.
Interest In Reducing Taxes
Contributing appreciated assets reduces or avoids taxes by providing income and transfer tax deductions at the time of contribution.
Let’s Start A Conversation
Why choose USLIT?
Monthly income for life
Steady distributions for you and your loved ones.
Avoid capital gains tax
Avoid capital gains on appreciated assets and receive a charitable deduction.
Legacy impact
Remaining funds create a DAF to support charities you choose.
Turnkey solution
Streamlined alternative to setting up a private trust on your own.
Income tax savings
Receive federal income tax deduction based on the charitable remainder portion of the contributed value.
