Most PIFs are offered by a particular charity whose primary objective is to mostly benefit that charity. A LIFETrust pooled income fund is intended to provide more "balanced" benefits between the donor and the charity. The additional advantages of a LIFETrust pooled income fund are as follows:
- “Oversized” tax deductions through the use of “new” pooled income funds. (A new PIF – that is, a PIF that has been in existence for less than 3 taxable years- takes advantage of special IRS calculation rules that result in higher deductions where, as here, we are in a low interest rate environment.)
- Specialized PIF trust provisions and investment strategies that are intended to generate larger annual income payments
- The assets are invested to generate income that is taxed at more favorable rates.
- The donor may recommend that the charitable remainder be paid to one or more of the donor’s preferred public charity(ies), or to have a donor advised fund established on the donor’s behalf.
- The ability to contribute assets other than cash or marketable securities, if approved.