Pooled Income Fund
A gift that pools your generosity with others and pays you income for life.
A pooled income fund is a simple way to give. Your gift of cash or appreciated securities joins gifts from other Christian donors in a fund administered by Cru Foundation. The fund is invested, and each quarter you receive your share of its net income for the rest of your life. When the income period is complete, the value of your share goes to the Cru ministries and missionaries you chose to support.
Most ways of giving ask you to part with something and walk away. A pooled income fund works differently. You make the gift today, and Cru Foundation pays you a share of the fund’s income every quarter for the rest of your life.
The income is not fixed. It moves with the fund’s investment performance, which means some quarters will be stronger than others. For donors who can carry that variability, the trade-off is real. A lower entry point than a charitable remainder trust, no setup fees, and a charitable deduction in the year you give.
What remains when the income period ends supports the Cru ministries and missionaries you named at the start.
Explanation of Benefits
Lower Entry Point
A pooled income fund has a $25,000 minimum, significantly lower than the typical $150,000 minimum for a charitable remainder trust. That difference opens the door for donors who want a life-income gift without the structure of a full trust.
Favorable rates for younger donors
Pooled income funds can offer more attractive payment rates for younger donors than a charitable gift annuity, which sets payments by age.
Charitable tax deduction
You can receive a charitable income tax deduction in the year you fund the gift. The deductible amount depends on your age and the assumed payout rate established by the federal government.
Simplicity
No setup fees. No separate trust to establish or administer. Cru Foundation handles the fund administration and your quarterly distributions.
A pooled income fund tends to fit donors in a specific season.
The donors who find a pooled income fund most useful are usually weighing a life-income gift but not quite ready for the size or structure of a charitable remainder trust. A few signs the moment fits:
- You are giving from cash or appreciated securities, and you want both a charitable deduction now and income for the years ahead.
- You have a Cru ministry or missionary in mind. This is not a generic gift to a generic cause. The donors who do this well have someone or something particular they are funding.
- You are comfortable with variable income. Pooled income fund distributions move with the fund's performance. That works for donors who have other steady income and want the upside. It works less well for donors who need a fixed quarterly amount.
- You want a lower entry point than a charitable remainder trust. A $25,000 gift opens the door without requiring the size or complexity of a CRT.
If three of those four describe where you are, a conversation is worth having.
What Cru Foundation does, from the first call to the last distribution.
Start with the situation, not the structure
Before we look at any numbers, we listen. What are you trying to fund. What income do you need. Who else in the family is part of this decision. The right structure follows from the answers, not the other way around.
Run the numbers on your specific gift
A pooled income fund's payout depends on the fund's performance and your share of it. We help you understand the assumed rate, the projected deduction, and the ministry impact side by side, so you can see what the gift actually does before you decide anything.
Stay with you for the life of the gift
A pooled income fund continues for the rest of your life, and so does the relationship. The Cru Foundation team that started the conversation is the same team you can call in year five, year fifteen, or whenever a question comes up.
A Pooled Income Fund is administered start to finish by Cru Foundation,
To get started, contact our team to discuss how a pooled income fund could apply to your situation. Once you have decided on the gift, here is an overview of how it works:
Step 1:
Make your gift
Fund the gift with a minimum contribution of $25,000 in cash or appreciated securities.
Step 2:
Receive income for life
Receive quarterly distributions for life, based on your proportionate share of the fund's net income.
Step 3:
Fuel the mission
After the income period is complete, the value of your share accelerates gospel work through your favorite Cru ministries and missionaries.
For most donors, a pooled income fund is a single decision that provides for the rest of their life. The gift is made once, and the income continues from there.
* The content on this page is for educational and informational purposes only. It does not constitute legal, tax, or financial advice. Please consult with qualified professional advisors regarding your specific situation before making any giving or planning decisions.