Pooled Income Funds

Dartmouth offers you the option of contributing to a pooled income fund—a trust that allows irrevocable gifts from separate donors to be commingled for investment purposes. Each income beneficiary receives a proportionate share of the fund’s annual net income. Upon the death of the beneficiary, the portion representing the donor’s share of the fund is distributed to Dartmouth for the purpose specified by the donor.

Dartmouth maintains three Pooled Income Funds, each with a different investment objective:

  • The Samson Occom Pooled Income Fund seeks significant long-term growth of income. This fund provides the highest tax benefit and the greatest potential for growth of income of any of the pools.
  • The John Ledyard Pooled Income Fund provides moderate growth income and an ample current yield.
  • The Old Pine Pooled Income Fund is designed to provide a generous current yield and a high degree of safety from market uncertainties. This fund is particularly appealing and appropriate for older beneficiaries.

Pooled Income Funds Benefits

  • The satisfaction during your lifetime from the future support of Dartmouth you have made possible.
  • Payments for life, to you and/or other beneficiaries you may designate.
  • An immediate tax deduction for a portion of the value of your gift.
  • An opportunity to increase your income from low-yield, highly appreciated assets while totally avoiding long-term capital gains tax on the appreciation.
  • Reduced estate taxes.

A pooled income fund donor realizes a charitable deduction for a portion of the gift’s value in the year the gift is made. In addition, the donor avoids capital gains tax on transfers of long-term appreciated securities. Distributions are taxed as ordinary income, and typically one or two beneficiaries are designated by a donor.