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POOLED INCOME FUNDSnational organization of which the local organizations are merely members, sothat there is no general supervision and control and perhaps not the requisiteaffiliation. The question thus arises of whether the national organization canmaintain a qualified pooled income fund for itself and either of these categoriesof local organizations. Presumably, a pooled income fund established for thebenefit of the local organizations would not qualify, because of an absence of therequisite affiliation.Therefore, a national organization in these circumstances would be bestadvised to maintain a pooled income fund for itself, allowing donors to recommendthe local organization to which the remainder interest in the gift should betransferred by the national organization, rather than allowing donors to designatea local organization beneficiary.§ 13.10 COMPARISON WITH CHARITABLE REMAINDERTRUSTSThe vehicle used most commonly in planned giving transactions is the charitableremainder trust. 100 There are some important distinctions between charitableremainder trusts and pooled income funds that warrant highlighting.First, the remainder interest beneficiary of a charitable remainder trust canbe any type of charitable organization. 101 The remainder interest beneficiary of acharitable remainder trust can be any type of public charity or a private foundation.102 By contrast, the remainder interest beneficiary of a pooled income fundmust be a public charity—and can only be particular types of public charities. 103Second, the income interest created by a charitable remainder trust must beeither an annuity amount or a unitrust amount, both subject to a minimum payoutrequirement. 104 The income interest created by a pooled income fund is thepro rata share of the earnings of the fund, whatever they may be. 105Third, the income interest term of a charitable remainder trust can be measuredby one or more lifetimes or a term of years not to exceed 20 years. 106 Bycontrast, the income interest term created by a pooled income fund must be forthe life of the income beneficiary. 107Fourth, a pooled income fund cannot receive or invest in tax-exempt securities.108 There is no comparable limitation in the case of a charitable remaindertrust. Indeed, there is almost no restriction on the type of property that can betransferred to a charitable remainder trust. By contrast, the type of property thatis transferred to a pooled income fund must be of a nature to satisfy the comminglingrequirement 109 —most frequently, money or marketable securities.100 See Chapter 12.101 The term charitable is used in this context to mean an organization that is tax-exempt under IRC § 501(a) byreason of being described in IRC § 501(c)(3). See § 3.3.102 See § 3.4.103 See § 13.1, text accompanied by notes 8–10.104 See §§ 12.2, 12.3.105 See supra § 13.2(b), notes 17–25.106 See §§ 13.5 and 13.6.107 See § 13.2(b), text accompanied by notes 22–23.108 See § 13.2(d).109 See § 13.2(c). 494