There are significant tax advantages. The charitable remainder value of the contribution can be deducted from income tax. There may be estate and gift tax advantages. It is also possible to avoid payment of capital gains taxes on any appreciated property contributed to the fund. Contributions to a pooled income fund can be made as frequently as you desire.
Beneficiaries receive a quarterly income check based on the value of the donor's shares.
A pooled income fund is an irrevocable trust agreement. The tax advantages to donors are based on the irrevocable nature of this agreement. Inc. Mercantile handles the investments, makes reports to contributors, prepares IRS reporting forms, and so forth. A. Acceptable gifts to the pooled income fund include cash, appreciated securities or any other property the fund's trustees will be able to quickly sell or reinvest in accordance with the fund's investment philosophy. At the time a contribution is made to the pooled income fund, you may designate anyone living as an income beneficiary for your contribution.