The Power of a Pooled Income Fund
When Donors Work Together, Everyone Benefits
If you want to make a major contribution to Shriners Hospitals for Children®, consider giving cash, securities or both to our pooled income fund.
How does a pooled income fund work? Your gift is added to the fund for investment and managed along with the gifts of other donors. Each year you receive your proportionate share of the fund’s annual earnings. We agree to pay you this income for the rest of your life.
Your advantages include the following:
- You acquire an assured source of income for life.
- You may increase your effective yield on the assets donated and benefit from professional and diversified investment management.
- You have the choice of determining the size of your initial gift and making additions later. (Shriners Children’s’s minimum is $5,000 for the initial investment, and for additional contributions.)
- You are entitled to an immediate income tax charitable deduction, if you itemize.
- You can name another person as successor beneficiary.
- You feel good knowing that your gift ultimately becomes available to Shriners Children’s to support our vital needs.
Which assets qualify? Cash and appreciated securities are accepted. The tax laws do not allow for tax-exempt securities, real estate or depreciable assets.
Tip: If you’re tired of low yields on your investments, a pooled income fund may boost your income and provide you with substantial tax savings.
How is my life income determined? The amount of income is determined by the rate of return earned by the entire fund for that year. Payments will be made to you quarterly. No annual fee is charged while Shriners Children’s acts as trustee of the fund.
Tip: You can benefit even more when you donate appreciated securities you’ve held for more than one year. Transferring them to the fund will not generate capital gains tax. And Shriners Children’s’s pooled income fund pays no tax when we sell the securities either.