Pooled Income Fund

Another option for donors who would like to make a gift to the UW Foundation but need income, especially those with appreciated securities, is the pooled income fund. A pooled income fund is very similar to a mutual fund.

To make such a gift, you sign a pooled income fund agreement and transfer cash or appreciated securities to the fund. You avoid capital-gain tax, if any, in the asset you use to make your gift. Your gift purchases “units” in the fund based on the fair-market value of your gift and the current market value of fund units. Income from the pooled fund is distributed on a pro-rata basis to the beneficiaries you specify. Beneficiaries receive income for life. When the last beneficiary dies, the value of your units in the fund will be distributed to the UW Foundation and benefit any program you choose.