POOLED INCOME FUNDS

Starting a Fund

Start your fund with two gifts on the same day. A pooled income fund is a fund that co-mingles gifts from multiple donors. For example, the gift could be from couple giving individually with each making a separate gift, receiving income on their gift first and each naming the spouse as the second income beneficiary. Another option is to secure a supporter of your organization to agree to make a gift on the same day as an already committed first donor. Explain the importance for the supporter to give you an undated check or promise to mail their gift on the same day you obtain the first one.

The three most comment methods to administer a Pooled Income Fund include:

1. The charity can be the trustee.

2. Employ a bank as trustee, but the charity maintains control.

3. Organization may be an affiliate whose funds are controlled by the umbrella organization.

Because of the complexity and changing regulations affecting Pooled Funds, it is wise to obtain specific advice to address your situation.

James Hohn is available to speak with your organization on this topic and offers training programs appropriate to the expertise of your staff and volunteers. Call 732 927 1747 or use the free direct connect tool on the Home Page of this website.