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GiftLaw Pro Home   >  Chapter 3 - Deferred Gifts  >  3.8 Pooled Income Fund  >  3.8.6 Terminating or Modifying a Pooled Income Fund  >  Basic Quiz

Basic Quiz - 3.8.6 Terminating or Modifying a Pooled Income Fund

1. Due to high returns in the last several years, pooled income funds are a good choice for donors.
           
2. If a donor and charity are unhappy with the operation of the pooled income fund it may be possible to convert the pooled income fund into a charitable gift annuity.
           
3. If a two-life pooled income interest is held by a husband and wife, then a transfer of that income interest for a gift annuity will require both the husband and wife to irrevocably give their current and contingent income interests to charity.
           
4. There is a specific provision in the Code that authorizes the conversion of a pooled income fund to charitable gift annuities.
           
5. In order for a PIF interest to be converted to a gift annuity, all of the beneficiaries of the pooled income fund must agree to have their interests converted to charitable gift annuities.
           
6. In general, a pooled income fund is a better vehicle than a charitable gift annuity or a charitable remainder trust.
           
7. If pooled income fund interests are converted into charitable gift annuities, the annuities do not have to comply with the 10% minimum deduction rule.
           
8. Pooled income funds function similar to mutual funds. Yet, they qualify for an exemption under Securities and Exchange Commission guidelines.
           
9. The Philanthropy Protection Act of 1995 requires charities to provide disclosures to donors whom contribute to their funds.
           
10. Sec. 104 of the Uniform Principal and Income Act defines income as both ordinary income and a prorated allocation of capital gain.