Pooled Income Fund

Tax Benefits
Current Income
Leaving a Legacy of Charitable Giving
Contribution Options
Administrative Services
Getting Started

Tax Benefits

In the Pooled Income Fund, assets are transferred irrevocably, combined with the gifts of many others, and managed by a trustee in a "pool." Donors receive an income for life, an income tax deduction, estate tax savings, and they bypass capital gains. The income is based on performance of the investment and the donor's share of the earnings of the pooled assets.

The San Diego Foundation Pooled Income Fund III is managed by City National Bank, whose management fee is .75% annually, taken from the principal. The minimum age for donors is 50 and the minimum contribution is $5,000.

Example:

John Doe, 65, makes a gift of stock that has a value of $90,000 to Pooled Income Fund III. John initially paid $10,000 for the stock.

Since the Fund currently yields 6.6%, John receives an initial quarterly income of $1,494. He pays no tax on the $80,000 capital gain and qualifies for an income tax charitable deduction of $34,273.

After John's lifetime, the value of his units in the Fund come to The San Diego Foundation, and are added to the Fund of John's choice.

• You will be able to deduct a portion of your Pooled Income Fund account contribution, depending on an actuarial calculation of the income beneficiaries' lifetime interests.
• If you donate long-term appreciated securities, you avoid paying capital gains taxes on them.
• You will receive quarterly checks.

Current Income

• The Pooled Income Fund is designed to provide a lifetime income stream for as many as two beneficiaries.
• City National Investments' experienced money managers manage the Pooled Income Fund. It is invested in both fixed income and equity mutual funds. The Pooled Income Fund's focus is on producing income while increasing the principal value of the account over time.

Leaving a Legacy of Charitable Giving

• Upon the death of the last income beneficiary, City National Investments will distribute the remainder of your account to The San Diego Foundation for distribution to charities you have recommended, so long as they meet with the Board's approval.
• You can recommend that the remainder of your account be used to establish a fund at The San Diego Foundation and name your heirs or others as donors and advisors of this fund. Doing so will perpetuate your tradition of giving.
• You can also recommend that the remainder of your account be contributed to a fund that already exists at The San Diego Foundation.

Contribution Options

• You can open an account with an irrevocable minimum contribution of $10,000.
• You can make additional contributions at any time.
• You can contribute to the fund with cash or appreciated securities.

• Each year, you will receive a single account document containing all the information you need for tax filing purposes.
• You will receive confirmation for each additional contribution.

Getting Started

If you're ready to open a Pooled Income Fund with The San Diego Foundation, please contact Adrienne Vargas at legacy@sdfoundation.org or (619) 235-2300.