A pooled income fund is a type of trust which "pools" your gift of at least $1000 with other gifts for investment purposes.  In return, you receive a proportionate share of the net income earned by the fund each year (much like a traditional mutual fund), which is taxed to you as ordinary income.  Upon your death, your "units" in the fund pass to Hillsdale College. Unlike a mutual fund, your "units" cannot be sold or withdrawn.

Annual income will vary according to the value of your "units" in the fund and investment performance.

You receive an income tax deduction for a portion of the gift's value and avoid all capital gains tax on gifts of appreciated property.

At Hillsdale College, we currently have available two pooled income funds: (1) the Pooled Investment Fund, and (2) the Pooled Growth Fund.
 

Pooled Investment Fund

Income objectives are achieved through a balanced portfolio of stocks and bonds, which provides a measure of growth against inflation.  Income in this fund is expected to range from 5 percent to 7 percent per year.
 

Pooled Growth Fund

This fund seeks long-term growth of principal and increasingly higher income over time at the expense of short-term income.  The fund is primarily invested in investment-grade growth stocks.  Income is expected to range from 3 percent to 5 percent per year.

Management of the Funds

Hillsdale College is the trustee of its pooled income funds.  Management is provided in-house through our Trust and Investments Office at no cost to the participants.

Investments are selected according to each fund's goal.  Portfolios of common stocks, corporate bonds and U.S. Treasury bonds are managed according to the objectives of the participants.
 

The administrator, Faith E. Kline, also handles the gift annuity program and charitable trusts.  These programs have approximately $14 million under management from over 250 supporters.

If you would like a complimentary and personal illustration of a pooled income fund prepared for you, please click here.