Pooled income fund

A pooled income fund is a type of charitable mutual fund created from securities or cash donated by an individual, a family or a corporation to a charity, which is then invested to provide dividends for both the donor and charity. The donations are irrevocable and tax-deductible and must be from personal assets. Capital gains taxes do not apply to securities donated to such a fund.

After a donor dies, the balance of their donation is given to a pre-determined qualified 501(c)(3) charitable organization (or several organizations). Charities typically manage their own pooled income fund, and fund their operations through the donated securities.

Sources

This article is issued from Wikipedia. The text is licensed under Creative Commons - Attribution - Sharealike. Additional terms may apply for the media files.