Pooled Income Fund
A gift that pools your generosity with others and pays you income for life.
A pooled income fund allows your gift to be combined with gifts from other donors in a fund administered by Cru Foundation. You may contribute cash or appreciated securities, and the fund is invested to provide income to participating donors.
Each quarter, you receive your proportionate share of the fund’s net income for life. When the income period is complete, the value of your share supports the Cru ministries and missionaries you chose.
For some Christian donors, a pooled income fund can be a thoughtful way to give generously while also receiving income from the assets God has entrusted to them.
Income for Life, Impact Beyond It
A pooled income fund can help you give now while receiving variable income for life.
Most charitable gifts are given outright. You give, the ministry receives the gift and the resources are used to help advance the work God has placed before that ministry. For many donors, that is the right and joyful path.
A pooled income fund works differently. You make a charitable gift today, and Cru Foundation provides quarterly distributions based on your share of the fund’s net income. Those distributions continue for life, but they are not fixed. They may rise or fall depending on the fund’s investment performance.
For donors who are comfortable with variable income, a pooled income fund may offer a helpful balance. It can provide a lower entry point than a charitable remainder trust, avoid the need to establish a separate trust and create a potential charitable deduction in the year the gift is made.
When the income period ends, the remaining value of your share supports the Cru ministries and missionaries you named at the beginning.
Explanation of Benefits
Lower Entry Point
A pooled income fund has a lower minimum gift amount than many charitable trust arrangements. This may make it a helpful option for donors who want to explore a life-income gift without establishing a separate charitable remainder trust.
Favorable rates for younger donors
Because pooled income fund distributions are based on the fund’s net income rather than a fixed payout rate, the income may vary from quarter to quarter. Some donors, including younger donors, may find this structure worth exploring as they compare pooled income funds with other giving options such as charitable gift annuities or charitable remainder trusts.
Charitable tax deduction
You may qualify for a charitable income tax deduction in the year you fund the gift. The deductible amount depends on several factors, including your age, the assumed payout rate established under federal rules and the details of the gift. Cru Foundation can help prepare information for you to review with your professional advisor.
Simplicity
A pooled income fund does not require you to establish and administer a separate trust. Cru Foundation administers the fund and provides quarterly distributions based on your proportionate share of the fund’s net income.
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 pooled income fund may be worth exploring if several of these describe your situation:
- 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.
- 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.
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 these 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, so you can see what the gift does before you decide.
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.