Flo's Legacy Fund
POOLED INCOME FUND
A group of donors create a fund (at an investment company, bank or other) to which they donate cash or appreciated property. This fund "comingles" the assets of many donors. The payout is determined annually based on the fund's rate of return.
DONOR PROFILE: Could be a small to substantial current donor who wants to keep income for himself and/or beneficiaries.
ESTATE VALUE: All
ANNUAL INCOME: Low - High
SUITABLE ASSETS: Cash and income producing assets (stocks and bonds), especially if they are highly appreciated.
ADVANTAGES TO DONOR: Income, gift tax and estate tax deduction. Avoidance of capital gains tax. Lifetime income with no limits. Investment diversification. Guaranteed payments by by the fund. Possible hedge against inflation.
DONOR CONTROL: No donor control.
BENEFITS TO CHARITY: Irrevocable right to receive the fund assets at demise of beneficiary.
DISPOSITION OF INCOME: Variable annual or more frequent income paid to donor and/or beneficiaries based on share contributed to fund.
DISPOSITION OF PRINCIPAL: Distributed to charity at the demise of the last designated income beneficiary.