Pooled Income Fund

The Pooled Income Fund (PIF) works like a charitable mutual fund. Your gift of cash or securities to Columbia's Pooled Income Fund is combined with other gifts in the fund, and you and/or your beneficiaries receive quarterly income on a prorated basis. The amount distributed varies with the fund’s investment performance. When the last income beneficiary of your gift dies, the principal attributed to your gift is removed from the fund and used by Columbia for the purpose you designate. The minimum gift is $25,000.

Columbia has two Pooled Income Funds:

• The Gouverneur Morris Fund seeks a higher level of current income as well as protection of the principal of the fund, limiting the opportunity for growth. It is invested in a portfolio of 65 percent bonds, 5 percent cash, and 30 percent equities.
• The Seth Low Fund has a balanced investment objective: to seek regular income for the life beneficiaries, protection of principal, and opportunity for long-term growth of principal and income. It is invested approximately 50 percent in equities, 45 percent in bonds, and 5 percent in cash.

What Are the Advantages?

• You receive a charitable deduction for a portion of your gift.
• You and/or your named beneficiaries receive income for life.
• You avoid all capital gains tax on any appreciated assets you donate.
• There will be estate tax savings.
• There is no cost connected with setting up a PIF gift.
• You make a substantial gift to Columbia.

Example

A 65-year-old donor in the 35 percent bracket contributes $10,000 in appreciated stock, originally purchased for $2,000, to Columbia's Pooled Income Fund. The donor is the income beneficiary. Assume the Fund is currently yielding 4.0 percent.

N.B.: Consult legal and tax advisors before making any decisions based on this information.

For More Information

If you are considering a pooled life income fund, e-mail us, complete the personal illustration form, or call us at
800-338-3294.

PLEASE NOTE: Gifts of appreciated securities and other property must have been held by the donor for one year in order to receive a full fair market value tax deduction.