Pooled Income Funds

Pooled Income Funds you to give away assets, such as stocks or bank savings, while keeping the right to receive the interest and/or dividend income. The Medical College of Georgia may use the remaining principal only after your death (and the death of one surviving beneficiary if one is designated).

A pooled income fund gift provides several financial and estate-planning benefits:

1. You retain income for life (if you donate a typical dividend-paying stock, you may approximately double the quarterly income you were receiving).
2. You avoid taxes on capital gains on the sale of appreciated securities.
3. You remove all or most of the assets donated from your estate, thereby reducing potential estate taxes.
4. You receive an income tax deduction based on your age (usually around 40 percent of the amount donated).
5. You eliminate your day-to-day investment decisions and worries.
6. Eventually, your gift will be a significant benefit to the university.

Example: Mrs. Gregory, 70, gives stocks worth $20,000 to the MCG Foundation Pooled Income Fund. She bought them several years ago for $4,000. By giving the stocks, she avoids taxes on the capital gains of $16,000. She also receives an income tax deduction of $4,000 or more based on her age. She will begin receiving income checks of approximately $300 each calendar quarter for the rest of her life. If she had kept her stocks, they would have provided her with, typically, only about $100 each calendar quarter. When she passes away, the remaining principal will go to the MCG Foundation to help support the Medical College of Georgia.