The University Foundation Pooled Income Fund functions like a mutual fund. At the participant's or beneficiary's death, UNH receives the value of the shares in the fund, which may be used for general purposes or for a purpose the donor has specified. Assets contributed to the Pooled Income Fund may include cash or marketable securities. No capital gains are incurred on the transfer of appreciated long-term securities to the fund.
Participants also receive a charitable deduction for a portion of their contribution.
The UNH Foundation's Pooled Income Fund was established in 1990 and is managed by State Street Bank. The investment program is designed to produce some growth, with an emphasis on current income. When the last beneficiary passes away, the principal of the gift will be removed from the Pooled Income Fund and used to support acquisitions for Dimond Library.