Charitable Trusts Charitable trusts do more than help the homeless, or the arts, or wildlife. They can help you, too, by reducing your federal income-tax rate and eventual estate taxes. They differ from other trusts because they also provide you some cash benefits while you're still alive to enjoy them.
Charitable trusts are irrevocable.
Pooled income trust Consider a pooled income trust to be a mutual fund for a good cause. You reap tax savings, and receive monetary dividends. And you don't need the big bucks necessary to establish a charitable trust of your own. How it works A charity sets up its own pooled income trust, and accepts contributions from individual investors. You make that contribution and deduct it, as allowed, from your federal income taxes.