Forward this article to a friend   Print version   Increase font size  Decrease font size 

Pooled Income Funds: Getting Started

If you want to make a contribution to Beloit College and would like to receive income in return, consider giving cash, securities or both to our pooled income fund.

Pooled Income Fund
You give cash or property.
You receive an income tax deduction and variable income for life.
Pooled Income Fund
The remainder benefits Beloit College after your lifetime.
Beloit College

How It Works
Your gift is added to our pooled income fund for investment and managed along with the gifts of other donors. Each year you receive your share of the fund's annual earnings. We agree to pay you this income for the rest of your life. If you wish, you can name someone else, such as your spouse, parent or anyone else to receive a life income, too.

How You Benefit
  • You acquire an assured source of income for life.
  • You can increase your effective yield on the assets donated and benefit from professional and diversified investment management.
  • You have the choice of determining the size of your initial gift and making additions later.
  • You are entitled to a partial income tax charitable deduction, if you itemize in the year you make the gift.
  • You can name another person as successor beneficiary for the income.
  • You feel good knowing that, after your lifetime, your gift becomes available to Beloit College to support our vital needs.
You can benefit even more when you donate appreciated securities you have owned for more than one year because no capital gain is taxable to you. And our pooled income fund pays no tax when it sells the securities.

Plus, through a gift of low-yield investments to a pooled income fund, many individuals have increased their income. When the interest you receive on money market funds and CDs barely keeps up with inflation, or your stocks pay dividends of less than 3 percent, a pooled income fund may be a charitable solution for you.

John contributes $10,000 to a pooled income fund, with his participation representing 1 percent of the fund. If the fund's net annual earnings are $40,000, John becomes entitled to 1 percent of $40,000, or $400, for that year. He includes a portion of his $10,000 gift as an itemized deduction on his federal tax return this year, so John also enjoys significant tax savings.

To learn more about the specific financial benefits you can enjoy by contributing to our pooled income fund, please contact Pam Prescott at 608-363-2683 or

Copyright © The Stelter Company, All rights reserved.

The information on this website is not intended as legal or tax advice. For legal or tax advice, please consult an attorney. Figures cited in examples are for hypothetical purposes only and are subject to change. References to estate and income taxes apply to federal taxes only. State income/estate taxes or state law may impact your results.

Contact Us   |  Bequests & Estate Planning Home