Pooled Income Fund

What is a Pooled Income Fund?

A Pooled Income Fund operates much like a mutual fund that is established and maintained by GSH in which multiple owners invest. GSH “pools” the contributions of many investors, invests the money, and then distributes to investors an annual payment. Upon investing, donors are provided both a tax deduction and potential lifetime income stream based on a prorated share of the income earned by the fund. After the donor passes away the remaining assets are distributed to the charity.

Is the Pooled Income Fund right for you?

If you answer yes to any one of these questions, a gift to our Pooled Income Fund could be right for you:

  • Would you like to make a significant gift to charity upon your death?
  • Do you want to benefit charity while also relying on income from investments during your lifetime?
  • Is a smaller gift within reach for you now, but you’d like to ultimately make a larger gift upon your death?
  • Would you like to use charitable giving to reduce the overall size of your estate and/or tax liability?

Why not just put GSH in my will?

Including GSH in your will is certainly an admirable (and welcome!) option, however a contribution to the Pooled Income Fund may prove more efficient for tax purposes. Donors may be eligible to take an immediate partial tax deduction, based on their life expectancy and the anticipated income stream. Pooled income funds are professionally managed — and a way to convert appreciated assets into income while minimizing capital gains tax.

How does it work?

Donors establish participation in the pooled income account, and will receive a tax deduction up front based on life expectancy and the anticipated income stream. Donors will receive a variable rate of return from their share over their lifetime. Meanwhile, the fund, owned by GSH and comprised of a combination of stocks and bonds, should enjoy an increase in the principal value over time.  Upon the death of the donor, the initial investment will have grown significantly, resulting in a significant financial benefit to GSH.

Interested in Learning More?

If you think a gift to our Pooled Income Fund could be a good fit for you, we’d love to schedule a time to talk about options, details, and next steps. Please contact the Good Shepherd Housing and Family Services Office of Development via this form.