On Wharton's behalf, Penn currently serves as trustee of many charitable remainder trusts and provides these services to donors and beneficiaries of those trusts. Each is outlined below. This is an individual trust paying the donor a fixed percentage of the principal in the trust as it is valued annually. The rate of return for the trust must be at least five percent. As with other life income gifts, however, a higher income rate for the unitrust will generate a lower charitable deduction and will mean a smaller growth of the principal that ultimately goes to Wharton.
Unitrust income is taxed to the donor based upon the trust's investments.
This is the same type of gift vehicle as the unitrust except that the income payment is a fixed-dollar amount when the gift is established. Because the income will not vary, the annuity trust is attractive to donors seeking secure and stable future income. Pooled Income Funds Donors to Wharton can make gifts to the University's Pooled Income Fund, which operates similarly to mutual investment funds. All income earned by the fund in each quarter is paid out to the participants, in pro rata shares. The rate of return of the pooled income fund varies from quarter to quarter, depending on the earnings of the fund.