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Pooled Income Fund
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You're considering a lifetime gift in partnership with the Associate Alumnae of Douglass College > Your planning objective is increased income > Your preference is a variable income payout
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 The Pooled Income Fund, operated by the Rutgers University Foundation, is one of the easiest ways to provide income for yourself or others while also making a generous gift to Douglass College. The Fund operates like a charitable mutual fund. Your gift of cash or securities is combined for investment purposes with gifts from other donors. Each quarter the Fund pays you your proportional share of its net income. When you or the last of your income beneficiaries dies, your portion of the Fund's principal is removed and used by us for the purpose you designated when you made your gift.
Here are some of the benefits of the Pooled Income Fund:
- If you contribute appreciated securities to the Pooled Income Fund, no capital gains tax is payable. You can contribute appreciated but low-yielding assets and put the entire amount of your gift to work earning income for you.
- You will also receive a charitable income tax deduction for your gift to the Fund, based on the fair market value of the assets you contributed minus the present value of the life-income interest you retained.
- You can benefit from professional investment management and our advisors.
- Your donation can diversify your portfolio if you are too concentrated in one asset.
- It is easy to join the Pooled Income Fund – a simple transfer agreement that we prepare effects the transaction.
- You can join the Pooled Income Fund with a gift of $5,000 or more. Additional contributions may be made with a gift of $1,000 or more. The Fund brings the benefits of a life-income gift into reach for many donors.
- You will receive gift credit for the remainder value of your contribution to the Pooled Income Fund – the same amount as your charitable deduction, explained above.
Your quarterly distribution will vary with the Fund's performance. The Fund is invested for income and modest capital appreciation, with preservation of capital in mind. The Rutgers University Foundation will give you the Fund's Annual Report, which describes the past performance and current objectives of the Fund.
All payments from the Pooled Income Fund are taxed to you as ordinary income.
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Example
At 65, you are an active volunteer in your community, still play tennis and golf, and invest for long-term growth. The bulk of your portfolio is Westinghouse stock that you acquired during your years with the company, and, although you are concerned that you are too concentrated in this one holding, you are reluctant to pay the capital gains cost of selling and reinvesting.
You want to support Douglass with a gift of $50,000.
You want to retain the income stream you enjoy from your stocks, so you decide to make a $50,000 contribution to the Pooled Income Fund. You use some of your Westinghouse stock to make the gift.
Here is a summary of your income and tax benefits:
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Donor
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Individual, age 65
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Click here to
calculate the
benefits the
Pooled Income
Fund would
give you.
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Amount contributed
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$50,000
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Cost basis
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$20,000
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Current dividend income
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$1,000
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Fund’s rate of return
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5%
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Annual income
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$2,500 (variable)
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Charitable deduction
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$11,814
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Increased annual income
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$1,500 ($2,500 from Fund vs. $1,000 dividend)
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Capital gain avoided
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$30,000
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Note: This calculation is based on a factor that changes monthly. For the most current figures, contact us or go the Gift Calculator to see the benefits this gift would provide you today.
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How Do You Make a Gift to the Pooled Income Fund?
Consult with an attorney specializing in the area of charitable gifts and estate planning. The Office of Gift Planning will provide a draft of the Pooled Income Fund transfer agreement, as well as the Fund's declaration of trust and disclosure statement, for review by you and your attorney, and will help you transfer cash or securities when you make your gift.
Email us, complete the personal illustration form, or call us at 732-932-2880 so that we can assist you through the process.
Associate Alumnae of Douglass College
Office of Gift Planning
181 Ryders Lane
New Brunswick, NJ 08901-8557
732-932-2880 | 732-932-2883 (fax)
E-mail: chamlin@winants.rutgers.edu
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