Contents
Contents Contents
POOLED INCOME FUNDSA national organization that carries out its purposes through local organizations,chapters, or auxiliary bodies with which it has an identity of aims and purposesmay maintain a pooled income fund (otherwise satisfying the requirementsof these rules) in which one or more local organizations, chapters, or auxiliarybodies that are public charities have been named as recipients of the remainderinterests. For example, a national church body may maintain a pooled incomefund when donors have transferred property to the fund and contributed an irrevocableremainder interest in it to or for the use of various local churches or educationalinstitutions of the body. The fact that the local organizations or chaptersare separately incorporated is immaterial. 39A national organization may wish to maintain a pooled income fund for thebenefit of local or other charitable organizations but not meet the foregoing criteria.In this circumstance, a donor could recommend (but not direct) that anamount equal to the remainder interest amount associated with the gift be paidby the remainder interest beneficiary over to the other charitable organization,following the death of the income beneficiary or beneficiaries.The public charity that maintains a pooled income fund may directly pay thecosts of managing and administering the fund, without endangering the qualificationof the fund. 40 The transfer of charitable remainder interests in a pooledincome fund from one eligible public charity to another will not adversely affectthe qualification of the fund. 41(f) Prohibitions as to TrusteesA pooled income fund may not have, and its governing instrument must prohibitthe fund from having, as a trustee a donor to the fund or a beneficiary(other than the public charity to or for the use of which the remainder interestis contributed) of an income interest in any property transferred to the fund. 42Thus, if a donor or beneficiary (other than the public charity) directly or indirectlyhas general responsibilities with respect to the fund that are ordinarilyexercised by a trustee, the fund does not qualify under these rules. The fact thata donor of property to the fund, or a beneficiary of the fund, is a trustee, officer,director, or other official of the public charity to or for the use of which theremainder interest is contributed ordinarily will not prevent the fund frommeeting these requirements. 43(g) Income of BeneficiariesEach beneficiary of a pooled income fund entitled to income in any tax year ofthe fund must receive the income in an amount determined by the rate ofreturn earned by the fund for that tax year with respect to his or her income39 Id. See § 13.11.40 Priv. Ltr. Rul. 9311018.41 See, e.g., Priv. Ltr. Rul. 200329031.42 IRC § 642(c)(5)(E); Reg. § 1.642(c)-5(b)(6).43 Reg. § 1.642(c)-5(b)(6). 482
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- Page 1002: § 13.2 QUALIFYING POOLED INCOME FU
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- Page 1028: POOLED INCOME FUNDScontributed” a
- Page 1032: POOLED INCOME FUNDSnational organiz
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- Page 1040: CHARITABLE GIFT ANNUITIESthe person
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POOLED INCOME FUNDSA national organization that carries out its purposes through local organizations,chapters, or auxiliary bodies with which it has an identity of aims and purposesmay maintain a pooled income fund (otherwise satisfying the requirementsof these rules) in which one or more local organizations, chapters, or auxiliarybodies that are public charities have been named as recipients of the remainderinterests. For example, a national church body may maintain a pooled incomefund when donors have transferred property to the fund and contributed an irrevocableremainder interest in it to or for the use of various local churches or educationalinstitutions of the body. The fact that the local organizations or chaptersare separately incorporated is immaterial. 39A national organization may wish to maintain a pooled income fund for thebenefit of local or other charitable organizations but not meet the foregoing criteria.In this circumstance, a donor could recommend (but not direct) that anamount equal to the remainder interest amount associated with the gift be paidby the remainder interest beneficiary over to the other charitable organization,following the death of the income beneficiary or beneficiaries.The public charity that maintains a pooled income fund may directly pay thecosts of managing and administering the fund, without endangering the qualificationof the fund. 40 The transfer of charitable remainder interests in a pooledincome fund from one eligible public charity to another will not adversely affectthe qualification of the fund. 41(f) Prohibitions as to TrusteesA pooled income fund may not have, and its governing instrument must prohibitthe fund from having, as a trustee a donor to the fund or a beneficiary(other than the public charity to or for the use of which the remainder interestis contributed) of an income interest in any property transferred to the fund. 42Thus, if a donor or beneficiary (other than the public charity) directly or indirectlyhas general responsibilities with respect to the fund that are ordinarilyexercised by a trustee, the fund does not qualify under these rules. The fact thata donor of property to the fund, or a beneficiary of the fund, is a trustee, officer,director, or other official of the public charity to or for the use of which theremainder interest is contributed ordinarily will not prevent the fund frommeeting these requirements. 43(g) Income of BeneficiariesEach beneficiary of a pooled income fund entitled to income in any tax year ofthe fund must receive the income in an amount determined by the rate ofreturn earned by the fund for that tax year with respect to his or her income39 Id. See § 13.11.40 Priv. Ltr. Rul. 9311018.41 See, e.g., Priv. Ltr. Rul. 200329031.42 IRC § 642(c)(5)(E); Reg. § 1.642(c)-5(b)(6).43 Reg. § 1.642(c)-5(b)(6). 482