An income fund that is operated by a charitable organization by means of pooling donated investments that are obtained as charitable contributions of securities from individual benefactors and donors (the participants). The pool is managed by the fund in such a way that donors receive their annual net pro rata earnings over the course of their lives. The charitable organization will be entitled to receive a donor’s earnings upon his/ her demise.

A pooled income fund combines the features of both charitable trusts and mutual funds. Earnings from the fund are paid to both the fund’s participants and their selected beneficiaries, on a pro rata basis.