Pooled Income Fund How it works You transfer cash, securities, or other property to the Pooled Income Fund. You receive an income tax deduction and pay no capital gains tax. The fund pays your share of its income each year to you or to anyone you name for life. When the gift term ends, your share of the fund's principal passes to benefit UGA. Pooled Income Funds were designed to allow you to give away assets, such as stocks or bank savings, while keeping the right to receive the interest and/or dividend income. The University may use the remaining principal only after your death (and the death of one surviving beneficiary if one is designated). A pooled income fund gift provides several financial and estate planning benefits: You retain income for life (if you donate a typical dividend-paying stock you may approximately double the quarterly income you were receiving). You avoid taxes on capital gains on the sale of appreciated securities. You remove all or most of the assets donated from your estate, thereby reducing potential estate taxes. You receive an income tax deduction based upon your age (usually around 40% of the amount donated). You eliminate your day-to-day investment decisions and worries. Eventually, your gift will be a significant benefit to the University. Example: Mrs. Johnson, age 65, gives stocks worth $10,000 to the Pooled Income Fund. She bought them several years ago for $2,000. By giving the stocks, she avoids taxes on the capital gains of $8,000. She also receives an income tax deduction of $4,000 based on her age. She will begin receiving income checks of approximately $150 each calendar quarter for the rest of her life. If she had kept her stocks, they would have provided her with, typically, only about $50 each calendar quarter. When she passes away, the remaining principal will go to the Charter Scholarship Endowment at the Arch Foundation to help provide scholarships to the state's best high school students. Types of Giving | Featured Donors | Professional Advisory Reference | Heritage Society | Get In Touch! | Home