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PARKS &
WILDLIFE
FOUNDATION Phone:
605-773-4503
About the Foundation |
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POOLED INCOME FUND
A pooled income fund ("fund") is a gift plan defined by federal tax law that allows you to provide income to yourself or others for life while making a generous gift to charity.
When you make a donation to a pooled income fund, your irrevocable gift of cash or securities is invested together with the gifts of all other fund donors. Your proportional share of the fund's income is distributed quarterly to one or more income beneficiaries named by you. The amount varies with the fund's earnings. When the last income beneficiary of your gift dies, the principal attributable to your gift is removed from the fund and given to the fund's charitable beneficiary, to be used for the purpose you designate.
EXAMPLE:
If you irrevocably transfer $50,000 in cash to a pooled income fund
for the lifetime benefit of an individual, age 72,
BENEFITS INCLUDE:
1) You will qualify for a federal income tax deduction of $20,135. Note that deductions for this and other gifts of cash and non-appreciated property will be limited to 50% of your adjusted gross income. You may, if necessary, take unused deductions of this kind over the next five years, subject to the same 50% limitation.
2) Your designated income beneficiary will receive payments in quarterly installments for life. In the first year, these payments will be approximately $4,500 (the fund is currently yielding 9%). Payments in future years will vary with the income of the fund.
3) Your estate may enjoy reduced probate costs and estate taxes.
4) You will provide generous support of SD Parks and Wildlife Foundation.
5) Your gift will benefit from expert asset management, provided by the same professionals who manage SD Parks and Wildlife Foundation's endowment.
November 26, 2002
These calculations are for illustration purposes only and should not be considered legal, accounting, or other professional advice. Your actual benefits may vary depending on the timing of the gift.
For more information see our Policy Manual.