Since you postpone your gauranteed payments until a date you choose, the interest on the fund will compound, and the amount you receive will reflect this. A donor may give cash or securities to the Wake Forest University Pooled Income Fund. The gift is pooled with gifts from other donors and operates similarly to a mutual fund. Donors are assigned units in the pooled income fund based on the value of their gifts and the value of the other assets of the fund at the time of the gift. The donor's gift will be invested and reinvested in high quality stocks and bonds together with other assets of the fund.
All income earned by the fund's assets is distributed to the participants.
Contributions to the fund provide a charitable contribution deduction for federal and state income tax purposes. The amount of the deduction depends on the age of the donor and the applicable rate of return of the fund. If long-term appreciated property is invested in the pooled income fund, there is no capital gain and the fund pays no capital gains tax on the sale of such securities. On the death of the income beneficiaries, the value of the donor units at that time are withdrawn from the fund and irrevocably transferred to Wake Forest for purposes earlier designated by the donor. Residence or Farm A donor may give his or her personal residence or farm to Wake Forest University and retain a life interest in it for the donor and his or her spouse.