Pooled Income Funds
Pooled Income Fund Overview
A pooled income fund (PIF) gives an individual the opportunity to receive lifetime income for up to two beneficiaries, allows the individual to support multiple charities, and has the potential to reduce federal estate taxes for heirs. It is established and operated by a public charity and gifts from all donors are pooled for investments.
CTAC Operational Services
- Monitor distributions based on fund performance, asset valuations, and Federal & State requirements
- Obtain and record financial transactions received from investment advisor
- Review all investment and operational transactions for accuracy and Federal & State compliance
- Determine tax character of each financial transaction
- Request and coordinate the receipt of the distribution amount to be paid to all beneficiaries by the investment advisor
- Maintain individual donor sub-accounts, including donor fund agreement information, fund investments, donor contributions and fund distributions to charitable organizations
- Prepare individual and consolidated reports as required
- Monitor fund compliance with the charitable organization's policy
All CTAC clients are provided with a number of documents that summarize and report on the activity of the account. A fund valuation report and report of all fund distributions is provided to our clients. A summary accounting of fund activity will include receipts by tax character of income, disbursements attributable to the fund amounts, capital losses, and the unrealized appreciation in the market value of assets will be provided. As required, CTAC will also provide individual and consolidated reports.
Clients of CTAC have the ability to view a summary of fund activity, including: receipts (by tax character of income), disbursements attributable to the fund amounts, expenses, capital gain or loss, and the unrealized appreciation in the market value of assets.
Federal, State, & Attorney General Reporting Services
CTAC prepares and files IRS form 5227 for the organization and K-1s for each participant. Depending upon the activity, other IRS forms may be required for unusual circumstances.