Life Income Gifts

Pooled Income Fund

Gifts to the pooled income fund may be set up to provide life income for you and/or another beneficiary. These gifts may be comprised of cash and/or appreciated securities and avoid all capital gain tax. Therefore, the entire gift amount is invested in the fund and is available to generate income. Donors receive quarterly payments of their share of all ordinary income (interest and dividends) earned by the pooled income fund.  

Benefits of a pooled income fund gift include:

• Variable income for life
• Complete avoidance of capital gain tax on securities held for more than one year
• An immediate income tax deduction

Example:
If you were to donate $10,000 of appreciated securities, with a cost basis of $4,000, at age 65, to the pooled income fund:

• You would receive income for life, based on the recent yield of 5.72%, you could expect $572.00 per year
• Be able to take an immediate income tax deduction of over $4,000
• Avoid capital gain tax on all of the appreciation

Every gift is unique. Your benefits will vary with the timing of your gift.

This information is for informational purposes only. Earthjustice is not in a position to offer financial or estate planning advice. We recommend reviewing any gift plan with your personal advisors.