Pooled Income Funds
Thank you for considering a Pooled Income Fund to benefit the Conventual Franciscan Friars of the Province of Our Lady of Consolation.
A pooled income fund is a charitable trust which combines gifts to the friars from many donors into a common investment pool with income distributed on a proportional basis. Donations to the pooled income are irrevocable. Donors may qualify for an immediate partial tax deduction as calculated based on their life expectancy and anticipated income stream. Donors must pay income tax on the income stream from the pooled income fund each year. After the donors belonging to the pooled income fund have passed, the fund distributes the remaining assets to the friars. Note that there is no special tax treatment for payments to the donor from a pooled income fund. The IRS considers trust income distributions to be ordinary income, subject to income tax. Upon the death of the last income beneficiary, the fund’s remaining balance goes to the friars.
As soon as a gift is received and matched to a donor, the Mission Advancement Office sends an acknowledgment letter stating the nature of the gift, the gift valuation date, and the gift valuation amount and a clarification statement indicating no goods or services were exchanged for the gift.
Please note: The Province of Our Lady of Consolation, is a tax exempt 501(c) organization (EIN # 35-6019627) and does not provide tax, legal, or financial advice. Any document or information shared by our staff is intended to be educational. We strongly encourage donors to seek counsel from their own legal and financial advisors.