Pooled Income Fund: The Details

A Pooled Income Fund is one of the easiest ways to provide income for yourself or others while also making a generous gift to Yale. A Fund operates like a charitable mutual fund. Your gift of cash or securities is irrevocably combined for investment purposes with gifts from other donors. Each quarter a Fund pays you your proportional share of its net income. When you or the last of your income beneficiaries dies, your portion of a Fund's principal is removed and used by us for the purpose you designated when you made your gift.

Here are some of the benefits of a Pooled Income Fund:

• If you contribute appreciated securities to a Pooled Income Fund, no capital gains tax is payable. This means that you can contribute appreciated but low-yielding assets and put the entire amount of your gift to work earning income for you.
• You will also receive a charitable income tax deduction for your gift to a Fund, based on the fair market value of the assets you contributed minus the present value of the life-income interest you retained.
• You can benefit from the professional investment management of our organization and our advisors.
• Finally, your donation can diversify your portfolio if you are too concentrated in one asset.

How do I join a Pooled Income Fund?

• It's easy. You can join a Pooled Income Fund with a gift of $10,000 or more. Additional contributions may be made with a gift of $1,000 or more. A Fund brings the benefits of a life-income gift into reach for many donors.
• A simple transfer agreement that we prepare effects the transaction.

On what are my payments based?

Your quarterly distribution will vary with the Fund's performance. A Fund is invested for income and modest capital appreciation, with preservation of capital in mind. We will give you a Fund's Annual Report, which describes the past performance and current objectives of the Fund. All payments from a Pooled Income Fund are taxed to you as ordinary income.

How do you make a gift to a pooled income fund?

If you seek the protection of a diversified investment portfolio, appreciate the opportunity to select a suitable combination of investment yield and growth, and want to provide future financial stability for Yale, then you may wish to consider a pooled income fund gift. A pooled income gift is particularly appropriate if you anticipate making additional life income gifts.

A pooled income fund combines and invests your gift of cash or marketable securities (excluding tax exempt bonds) with the gifts of others and pays your proportionate share of the fund's yield each year to you for life or to persons whom you designate for their lifetimes. Yale maintains three pooled income funds: a growth fund, a balanced fund, and a stable fund. Recently, these funds returned approximately 4.0%, 4.5% and 4.0%, respectively.

The University asks that you make a minimum initial contribution of $10,000 to a pooled income fund. Subsequent contributions may be as low as $1,000.