Pooled Life Income Funds
Because gifts to these funds are invested jointly in a large investment pool similar to a mutual fund, yearly income generated from the funds is shared proportionately among participants. A donor would: incur no capital gains taxes on the transfer of appreciated long-term securities, receive a charitable deduction for a portion of the gift, and receive a lifetime income. The minimum gift is $5,000. The fund may be designated for any purpose at the University.
Fran is a 55-year-old graduate of the University of Maine who owns stock that is highly appreciated. Because she knows that she will owe capital gains tax if she sells the stock, she gifts it to the University of Maine Foundation’s pooled life income fund. She receives a charitable deduction this year and lifetime income depending upon the fund’s earnings.