Pooled Income Funds

Question 1

PIF Value

Answer 1

Total value of property minus

– PV of retained interest

Question 2

PIF Recipient of payment

Answer 2

Noncharitable beneficiary (typ. Donor)

Question 3

PIF payment

Answer 3

Fund’s rate of return for the year

Question 4

PIF remainder beneficiary

Answer 4

Charity

Question 5

PIF additional contributions?

Answer 5

Yes

Question 6

PIF purpose

Answer 6

• Split interest gift where part of interest is given to charity
• Donor receives a fixed annuity and remainder goes to charity
• Usually created during life

Question 7

PIF planning opportunity

Answer 7

• Preferred by those who want to avoid having to establish and maintain a trust
• Frequently maintained by colleges and universities

Question 8

PIF Gift/Income Tax consequences

Answer 8

Income tax: Donor eligible for an immediate charitable contribution deduction, if created during life, subject to limitations on the type of charity and AGI limitations