Pooled Income Funds (PIFs) have been around since 1969. Because interest rates are rising, the PIF yield is higher, and power to adjust allows post-gift realized capital gains to be distributed in higher income amounts to donors income. You might like to consider t he pooled income fund!

 

Thank you to professional advisors who have long discussed the wonderful elements of a charitable remainder trust to Community Foundation and to the many who have steered clients to Community Foun d ation donor-advised funds.

 

However, with a more modest gift amount, PIFs allow donors to "pool" their resources with others in a fund invested by Community Foundation's professional investment team. The purpose is to generate income for donors (proportional to their contribution of the whole fund). Besides generating income to the donor or other named recipient (distributed quarterly or yearly), at the conclusion of the donor's or other recipient's life, the remainder of the gift rolls to Community Foundation to help solve problems in our communities.

 

Tax Advantages:

The tax advantages to a donor varies dependent on factors such as donor's age and the nature of the asset that was liquidated for the investment. Where applicable, a tax deduction for the contribution, as well as, avoidance of capital gains tax on appreciated assets and avoidance of estate tax may apply. Additional gifts to your PIF can be made yearly to accrue further tax deductions, and the donor does not need to incur the cost of establishing a trust as in the case of a Charitable Remainder Trust.

 

A PIF is a valuable tool for donors and charities to work together to provide help to people in need in our communities.

If a PIF sounds like an option for you, contact Nancy Massicci or George Ferrari at 607-272-9333.  We are happy to answer questions. Alternatively, contact your professional advisor and review our " At a Glance" online information.