Pooled Income Fund
If you own highly appreciated stock, a Pooled Income Fund may be an
effective way to achieve your charitable goals, increase your income
and save on taxes.
How it Works
- You make a permanent gift of cash, appreciated stocks, property or
other assets to the Pooled Income Fund held at Wells Fargo on behalf of
The Community Foundation. You receive an immediate tax deduction for
the charitable portion of your gift.
- During your lifetime, the pooled income fund provides you with a regular income stream from the fund.
- After your death, the remaining assets from your gift in the pooled
income fund are transferred to The Community Foundation, where we set
up a fund in your name, in the name of your family, or in honor of any
other person or organization you choose. We handle the fund's
administration and grantmaking.
- As we distribute grant awards in your fund's name, your gift
becomes a lasting resource, benefiting the community for generations to
Pooled income funds are attractive to many donors. It is a simple
process, gifts can be made in smaller amounts than a charitable trust,
as assets are "pooled" with other contributions, and additional gifts
can be made in future years. The minimum initial contribution to The
Community Foundation's Pooled Income Fund is $5,000.
The income stream that you receive from the pooled income fund
(particularly in cases of appreciated stock gifts) often ends up being
higher than the interest and dividend payments would have been had you
held on to the stock. By transferring the securities to The Foundation,
you also avoid capital gains taxes on the stock appreciation.