Donors are entitled to income tax deductions based upon the value of gifts and payment terms, and they avoid estate taxes. This gift type is appealing to older donors seeking a guaranteed, fixed lifetime income. Pooled Income Funds Gifts of cash or securities to a UC Foundation pooled income fund generate variable lifetime income to the donor or others whom the donor selects. Each year, donors receive a proportionate share of the pooled income fund's investment income. Donors are entitled to income tax deductions based upon the value of gifts and life expectancies.
Gifts avoid capital gains and estate taxes.
To establish this type of gift commitment, a donor transfers cash, stocks, bonds or income-producing real estate to the Foundation as trustee. For the term of the trust, income from these assets benefits the University. Thereafter, the trust principal is typically returned to the donor or passed to the donor's family. Lead trusts enable donors to pass assets to family at significantly reduced value for gift and estate tax purposes and also can enable donors to reduce taxable income during the trust term. A donor's residence, vacation home, timberland or farm may be transferred to the University, while reserving use of the property for the donor's or another's lifetime.