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370 Main Street
Suite 650
Worcester, MA 01608
(508) 755-0980

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Giving Later
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Pooled Income Fund

Greater Worcester Community Foundation offers a Pooled Income Fund (PIF) to provide donors with lifetime income from a professionally managed, diversified fund. Our PIF is administered by State Street Bank & Trust Co. and is comprised of the commingled gifts of many donors, invested in a balanced equity/bond portfolio. Donors and other people named as beneficiaries receive regular payments of net income. After the lifetime of the donor and any beneficiaries, the remaining gift is used to establish a charitable fund at Greater Worcester Community Foundation to carry out the wishes stated by the donor. The ideal PIF donor is someone who owns non-dividend paying securities and is contributing $500,000 or less (and would consider the establishment of a separate charitable remainder trust to be cumbersome and expensive).

 

What are the advantages of participating in the PIF?

• Immediate charitable income tax deduction. A calculation is made to determine the donor’s immediate charitable income tax deduction on gifts made to the PIF. This involves the age of the income beneficiaries and the fund’s payout rate. If necessary, the deduction may be carried forward for up to five years.

• Income for life. The donor, or anyone else he or she chooses, enjoys steady annual income from a fund that is invested for growth and income. Quarterly payments are based on the donor’s proportionate share of the entire fund’s earnings.

• Elimination of capital gains tax on gifts of appreciated securities. Just as with any gift of appreciated securities to a tax-exempt public charity, your gift to the Greater Worcester Community Foundation PIF avoids tax on capital gains.

• It is easy to participate, with a gift of $5,000 or more. Since the trust is up and running, anyone may participate with an initial gift of $5,000; additional gifts may be made in increments of $1,000.

• Reduction in estate taxes. The assets are no longer a part of the donor’s estate.

• Leave a charitable legacy and provide support forever. People who make a gift through the PIF are creating a way to help the community they care about, forever.

How do I make a gift to the PIF?

Contact Ann T. Lisi at (508) 755-0980 and request a packet. She will discuss your charitable goals and will work with you to transfer cash or securities to the Foundation PIF. A simple, two-page form will accompany your gift.