Pooled Income Funds (PIF)

How the Pooled Income Funds Work

When you contribute to a Pooled Income Fund, you are eligible for an immediate income tax deduction. Your taxable estate will also be reduced. Your contributions are invested in your choice of three styles of diversified investment pools, which are designed to generate a monthly income payable to you and/or a loved one. Upon the death of the last income beneficiary, the remaining principal is available for gifting based on your wishes, or future growth can be recommended by account successor(s).

You are encouraged to consult with your tax advisor or accountant prior to finalizing the Donor Information Form. Tax benefits depend upon your individual circumstances. Selection of certain income beneficiaries may create gift tax liability.

Who's Eligible to Donate?

Each Pooled Income Fund will accept contributions from individuals, trusts, estates, and others. However, the income interest must be created for the life or lives of natural persons.

Who's Eligible to Receive Income?

Interest and /or dividend income, which is subject to income tax, can be paid only to individuals.

Acceptable Contributions

Cash.
Long-term securities (stocks, mutual funds, certain restricted securities, and privately held stock).
A minimum initial donation of $20,000 is required, after which subsequent minimum donations of $5,000 may be made.

Investment Options

Three styles of Pooled Income Funds are available. All assets are invested in established professionally managed portfolios, registered with the Securities Exchange Commission. Donors may select one or a combination of the following three Funds. A minimum initial donation of $20,000 per Fund is required. No transfers among Funds are permitted.

The High Yield Pool seeks to maximize current income by investing primarily in high-yielding obligations rated below investment grade. The pool's principal value (and corresponding income payments) may decline over extended periods of time.

Designed for individuals seeking high income who are comfortable with the above-average risk and volatility associated with lower-quality debt investments.

The Current Income Pool seeks current income from a variety of debt instruments and other income-producing securities, the majority of which will be rated investment grade by established rating agencies. The pool's principal value will fluctuate.

Please note that Pooled Income Funds don't reinvest income.

Designed for individuals who are uncomfortable with the volatility of lower-quality debt investments and who can accept a more modest rate of income.

The Growth & Income  Pool seeks total return by investing primarily in income-producing equity securities and investment-grade debt obligations. They seek to realize both capital appreciation and current income.

Designed for younger individual donors with a longer life expectancy for whom potential growth of principal (and income) is primary and current yield is secondary.

Eaton Vance Management and its affiliates have provided professional investment management services since 1924. Eaton Vance is a recognized leader in tax-sensitive investment strategies. The company sells its products exclusively through financial advisors.

You and/or your designated income beneficiary(ies) will receive a monthly income distribution. Payments will continue until the death of the last income beneficiary. At that time, the remaining balance will transfer to USCGT for charitable grants or other charitable purposes.

Income is variable and will depend on investment performance. Monthly income distributions are not fixed. Income can be electronically transferred to a checking/money market account as instructed in the Distribution Instructions for ACH Application Form.

All contributions, grants, and transfers have written acknowledgement mailed within five business days of processing. Contribution acknowledgements serve as your tax receipts. Statements are issued quarterly, reporting earnings and the account balance for the period. Internet account access is available through My Charitable Fund.
 

Pooled Income Funds vs. Charitable Remainder Trusts (CRTs)

Pooled Income Funds may offer more advantages than CRTs and are far easier, as well as less expensive, to establish and maintain.

Enjoy Low Costs and Virtually No Paperwork

There are no additional legal fees to establish a Pooled Income Fund. The Funds' Trustee handles all of the record keeping and sends contribution confirmations that include the Trustee's calculation of the associated income tax deduction. Annually, you receive a Substitute Form K-1.