More Information About Pooled Income Funds

 

Pooled Income Funds are a very flexible way to make a gift to the charitable organization. The provide flexible income for life for you and/or others you choose. They are easy to create and can be funded with gifts of relatively modest amounts. Additional contributions can be made to the fund at any time.

Click on any of the underlined items in the interactive text example below to create your own charitable gift annuity scenario. 

Example

Carl, age 60, would like to make a charitable gift to Helen Keller International but would like to provide for a source of income that can increase with investment earnings in future years. It was decided to make a contribution of $10,000 per year to the pooled income fund for this year and the next several years. The federal income tax deduction for the first year will be $4,055. It is estimated the fund will pay income in the range of 4.8% that will rise or fall with prevailing economic conditions. Over time it is also hoped there will be growth in the assets in the fund. This could also result in an increase in income in future years.

To summarize the benefits:

  • Amount transferred to pooled fund $10,000
  • Estimated annual payments of $480
  • Immediate income tax deduction of $4,055

 Return to Basic Version

NOTE: This calculation is provided for educational purposes only. The type of assets transferred, the actual date of the gift, and other factors may have a material effect on the amount or use of your deduction. You are advised to seek the advice of your tax advisors before implementing a gift of this type. 

© Copyright 2020 by Sharpe Group. All Rights Reserved.