Pooled Income Funds Benefit Both Donor and Charity
- Ray Roberts
What do you do if you want to make a significant donation to charity, but you also want to maintain an income stream throughout your lifetime? Investing in a pooled income fund might be the answer.
This type of fund allows donors to make contributions of cash, stocks, and other assets. Those assets are pooled with the contributions of other donors and invested. For the remainder of their lifetimes, donors receive regular income distributions from their contributions based on how those investments perform. After the donor dies, their contribution is distributed to one or more 501(c)(3) charities.
Pooled income funds can offer donors tax savings and income stability, but they also have a few limitations. Here are some of the benefits and drawbacks of pooled income funds:
Despite their limitations, pooled income funds can be an ideal option for those who want to make a future contribution to charity while still maintaining income during their lifetime. If a pooled income fund sounds like it might be a good fit for your giving plan, contact one of CRI’s professionals today.
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