Traditional pooled income funds have fallen from favor because payments were limited to net dividends and interest earned during a long period of declining interest rates. But recent changes in state trust law and new IRS regulations now allow us to craft a new kind of PIF: one that distributes tax-efficient payments that can increase over time as the trustee invests for capital appreciation as well as income. We will review these recent developments, describe how to establish and administer a total return PIF, and discuss investment, fiduciary, and marketing/communications issues. Syllabus for Gift Planners code: 3.01.05  MORE »

Last January, the IRS published final regulations regarding pooled income funds and their ability to obtain an income tax deduction for amounts permanently set aside for charity based on state law definitions of income. Following recent conversations with IRS, PGDC editorial board member Reynolds Cafferata reports that IRS representatives have concurred informally that a release by the trustee of the power to adjust capital gains between income and principal should be adequate to allow a pooled income fund to maintain its deduction for capital gains permanently set aside for charity without need for a judicial proceeding.  MORE »

On December 30, 2003, the Treasury Department issued final regulations under Internal Revenue Code Section 643(b) which defines trust accounting income. David Wheeler Newman of Mitchell Silberberg & Knupp LLP and Susan Termohlen, Managing Director-Tax at Kaspick & Company have reported that an important provision of the regulations may require existing Pooled Income Fund trusts to be amended, and that the deadline for doing so is very tight.  MORE »

This session discusses the difficulties of the pooled income fund associated with payout of trust accounting income. It presents the possibility of creating a unitrust or unitrust-like payout format under the proposed IRC 643(b) regulations, the potential benefits of a PUF, and the options and tradeoffs that may be involved in creating such a planned giving vehicle. (Syllabus Code 3.01.05)  MORE »

This comprehensive paper provides a complete overview of pooled income funds, qualification requirements, income tax deduction rules, taxation of the fund and distributions, gift and estate tax consequences, and application of private foundation excise taxes.

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The authors review the structure and characteristics of pooled income funds and suggest several specific types of PIFs that have benefits in certain situations. Syllabus for Gift Planners code: 3.01.05  MORE »

Of the three retained income gift vehicles, the pooled income fund ranks a distant third in terms of popularity. Why? Compare pooled income funds to charitable remainder trusts and charitable gift annuities in terms of payout amounts, the tax character of those amounts, and other factors, and the answer is clear -- so clear according to Los Angeles attorney David Wheeler Newman that many organizations that manage PIFs are now weighing their alternatives.  MORE »