Pooled Income Fund
GOAL: Establish a gift plan now that will provide me with income and some immediate tax benefits
"I need to receive an income from my assets for the rest of my life, or for a period of time, but I want to establish a specific gift plan for George School now that will provide me with income and some immediate tax benefits."
METHOD: Participate in the Pooled Income Fund. (Also see: Charitable Gift Annuity and Charitable Remainder Trust)
FREQUENTLY ASKED QUESTIONS ABOUT THE GEORGE SCHOOL POOLED INCOME FUND
WHAT IS THE GEORGE SCHOOL POOLED INCOME FUND? The Pooled Income Fund, established by George School in 1981, allows you to make irrevocable gifts to a "charitable mutual fund" which pools contributions for investment purposes, and pays you a lifetime income each quarter that represents the your pro-rata share of the fund's income.
Over 25 George School alumni and their spouses receive a quarterly income from the Pooled Income Fund.
RETURN TO TOP WHAT ARE THE BENEFITS OF A POOLED INCOME FUND CONTRIBUTION? The George School Pooled Income Fund is particularly beneficial if you want to:
- Make a gift to George School of at least $10,000
- Receive a charitable income tax deduction for a portion of your gift
- Avoid capital gains on gifts of appreciated securities
- Receive some return on assets contributed during your lifetime and/or that of your spouse or another beneficiary over the age of 55.
RETURN TO TOP WHAT KIND OF ASSETS CAN BE CONTRIBUTED TO THE POOLED INCOME FUND? Cash or marketable securities (stocks) can be contributed. Many donors find it attractive to contribute highly appreciated stock which pays little or no income.
RETURN TO TOP CAN I CONTRIBUTE ADDITIONAL AMOUNTS TO THE POOLED INCOME FUND? Yes, at any time once your account has been established. Each additional gift must be at least $5,000.
RETURN TO TOP ARE THE INCOME PAYMENTS FROM THE POOLED INCOME FUND TAXED? Yes. Distributions are taxed as ordinary income.
RETURN TO TOP CAN GEORGE SCHOOL GUARANTEE THAT THE FUND OR MY INCOME WILL INCREASE IN VALUE? No. The Pooled Income Fund is invested in a variety of stocks and bonds that may increase or decrease in value. The income you receive may also increase or decrease from quarter to quarter.
RETURN TO TOP WHO SHOULD I CONTACT REGARDING THE GEORGE SCHOOL POOLED INCOME FUND? For a personal illustration of a Pooled Income Fund contribution contact Director of Planned Giving Andy Popkin at
GSPlannedGiving@georgeschool.org or 215.579.6563.
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