A gift to the pooled income fund can provide you with the satisfaction of supporting San Francisco Ballet while at the same time planning for your own financial future. Pooled income funds are similar to mutual funds: During your lifetime, your irrevocable gift is combined with other gifts to the fund and is invested in a diversified portfolio of stocks and bonds. Each quarter, you (or a designated income beneficiary) receive a payment that reflects your share of the actual earnings of the fund's portfolio. Thus, income varies from quarter to quarter in accordance with investment performance. When payments cease upon the death of the beneficiary, the market value of your gift is released from the fund and added to the Endowment Foundation, where it will last in perpetuity and provide annual income for the Ballet's use.
The San Francisco Ballet Endowment Foundation Pooled Income Fund, which is managed by Union Bank of California, N.A., has yielded approximately 4.5% annually in recent years. Currently, 80% of the Fund is invested in fixed income and the other 20% in equities.
In the year of your gift to the pooled income fund, you can claim a charitable deduction for the present value of the Endowment Foundation's remainder interest. This amount is determined by IRS tables and based on such factors as the market value of your gift, the fund's highest payout rate during the past three years and the age of the income beneficiary/ies.
Your gift to the fund may be made in cash and/or stock that has been held for more than one year. It is useful to note that gifts of appreciated stock are not subject to capital gains tax. Consequently, it will always be to your advantage, no matter what your income bracket is, to give appreciated securities rather than to sell them and give an equivalent amount in cash.
The minimum gift required to establish an account in the San Francisco Ballet Endowment Foundation Pooled Income Fund is $10,000. Additional gifts of at least $2,000 may be made by the donor in future years.
For an illustration of how a pooled income gift could benefit you or a loved one, please contact Elizabeth Lani, the Ballet's planned giving manager, at 415.865.6623 or firstname.lastname@example.org.