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Pooled Income Fund
A way to receive variable current income from your charitable contribution
The Anabaptist Foundation Pooled Income Fund is a great way to contribute to your favorite charities, receiving payments for life based on the fund.s current interest income, and get substantial tax savings.
How it works
A pooled income fund is the simplest form of gift that provides a variable return to the donor as ordinary income. All gifts to the fund are .pooled. for investment purposes, and the returns are shared proportionately among the participants. To create returns on investments, we invest within our Anabaptist constituency. The Anabaptist Foundation Pooled Income Fund allows the donor to recommend the charities that will eventually receive the principal. Plus, donors receive quarterly variable payments for life, based on the investment returns of the fund.
How to make a gift
You donate cash or marketable securities (stocks, bonds, etc.) to Anabaptist Foundation. We turn your non-cash contributions into cash and place the money into the pooled income fund.
You can make your gift a large as you like, and you can recommend as many charities as you please. We require a minimum contribution of $2,500, with subsequent contributions of $1,000 or greater.
Advantages for donors
Lifetime income - You receive quarterly variable income payments for life or term of years, based on the performance of the investments.
Multiple donations for a single gift - You may be interested in making a substantial donation but cannot afford it all at once. With the pooled income fund, you can make multiple donations of $500 or more over a period of months or years, and then recommend that the entire amount you donated go to one or more charities.
Avoid capital gains tax - When appreciated securities are donated, the donor does not have to pay tax on capital gains. This leaves more money to go to charity.
Immediate tax deduction - In the year the gift is made, you get a federal income tax deduction for the present value of the charitable remainder value of the property, up to 30 percent of your adjusted gross income if funded with securities held long term. Any deduction you qualify for above these limits may be carried forward for up to five successive years.
Tax contribution receipt - Anabaptist Foundation will issue contribution receipts to donors for tax purposes.
Privacy - If the donor wishes to give anonymously, the foundation can act as a screen between the donor and recipient charities.
A case study
James and Ella, age 60, would like to make a large contribution to a Christian school that educated their children and grandchildren. They need current income and can afford to contribute only $2,000 a year. They make $2,000 annual contributions for the next 25 years, receiving a charitable income tax deduction each year, and increasing their income from the fund each year.
At their deaths 25 years later, the charitable remainder interest of their contributions goes to the school they have recommended.
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