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Pooled Income Funds

If you are interested in receiving supplemental income while making a gift to Vassar, you may want to consider a gift to one of our Pooled Income Funds. As with a mutual fund, a Pooled Income Fund is a trust fund where gifts are combined ("pooled") with gifts from other donors and invested. Your gift entitles you to a pro rata share of the income from the fund for your lifetime. At your death, the remaining proceeds from the gift come to Vassar to be added to its general endowment or to support whatever purpose you had designated at the time of the gift.

The amount of income is entirely dependent upon the net earnings of the Pooled Income Fund’s investments, which varies over time. This means that your income payments will also vary from quarter to quarter. Vassar offers two Pooled Income Funds. The Income-Oriented Pooled Income Fund focuses on earning income while the MacCracken Fund is a balanced fund that seeks a moderate level of income and some principal growth as well. Income payouts are within the 3-5% ranges, depending upon the fund. Historically, Pooled Income Funds fare better when interest rates and thus the income the fund is able to earn is higher.

At Vassar, a beneficiary must be at least 50 years old and the minimum gift amount is $5,000. (Existing Pooled Income Fund donors who wish to make additional gifts may do so with just $1,000.)

EXAMPLE
Gift Calculator
Donor, age 55 gives $25,000 appreciated securities to a pooled income fund.
Income Oriented FundBalanced Fund (MacCracken)
Income 1st year$938 or 3.75% (variable) $813 or 3.25% (variable)
Charitable Deduction *$9,635$10,727
Capital Gains TaxAvoidedAvoided
Reduce Taxable Estate by$25,000$25,000
Minimum gift amount is $5,000.
*
Deduction will vary based on IRS discount rate.

To request a personal gift illustration from the gift planning staff, please Alexas Orcutt with the Gift Planning Office at (845) 437-5487 or (800) 443-8196 or use our information request form. If you'd prefer to run a sample calculation yourself, please use the planned gift calculator.

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More information

Contact Alexas Orcutt
Gift Planning Office
(845) 437-5487
(800) 443-8196