- Gift PlanningGift Planning
- Contact Gift Planning Staff
- The Office of Gift Planning
- Life Income Gifts
- Testamentary Intentions, Retirement Assets, & Insurance
- Johnson Chapel Associates
- Gifts of Property
- Gifts to Your Reunion
Pooled Income Funds
The Amherst College Pooled Income Funds offer an excellent opportunity to provide a significant future gift to Amherst while enjoying lifetime income and important tax advantages.
Acting much like a charitable mutual fund, the Amherst pooled income funds accept gifts from many individuals and "pool" them together for investment purposes. Every three months the income earned by the funds is distributed to the participants based on their proportional share of the total fund. When the last person named to receive the income passes away, that portion of the fund principal associated with the gift is made available to support the College.
Two Funds from Which to Choose
The Immediate Life Income Fund has approximately 114 participants and $6.4 million in assets. The Fund is invested with an emphasis on current income and modest growth of principal. The average income yield of the fund over the past five years has been about 4%. However, current yields are not a guarantee of future performance.
The Balanced Income Fund offers a more modest immediate return, with the expectation of greater income through long-term capital growth. The fund has approximately 82 participants and $7.8 million in assets. The average income yield over the past five years has been approximately 3.3%. However, current yields are not a guarantee of future performance.
Initial gifts to either pooled income fund must be at least $10,000. Subsequent gifts can be for $2,500 or more. Gifts may be in cash or marketable securities (except tax-exempt securities). All income recipients must be at least 50 years old.
Donors to the Amherst Pooled Income Funds receive a charitable income tax deduction in the year they make the gift. The amount of deduction depends on the size of the contribution, the age of the income beneficiary(ies), and the fund's highest rate of return in the previous three years.
Special Benefits for Gifts of Appreciated Securities
Gifts of appreciated marketable securities—stocks, bonds and mutual fund shares—held long-term by the donor completely avoid the capital gains taxes that might otherwise be levied on a sale of these assets. These assets should be transferred directly to either fund where they can be sold and the full value of the gift reinvested for the benefit of the named income recipients.
Information contained in this website should not be considered legal, accounting, or other professional advice. Individuals considering a planned gift to Amherst should consult with their financial advisor.
For more information about making a planned gift to Amherst, please contact the Gift Planning staff.