A pooled income fund (PIF) is similiar to a charitable remainder trust to which more than one donor is able to make contributions.

A public charity must establish and maintain a common investment fund into which donors transfer assets while retaining a share of the annual income in proportion to his or her contribution.

The Federal income tax deduction is based on the ages of the beneficiaries and the highest rate of return paid by the fund over the last three years.

The frequency of payments; e.g., monthly, quarterly, etc., does not affect the tax deduction.

Pooled income funds may not invest in tax exempt securities nor except them as contributions. Also, no donor nor beneficiary may serve as trustee.

• Estate and Gift Taxation
• PIF Diagram

This document was last modified on April 25, 1997

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