Pooled Income Funds
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 The Crown College of the Bible. Unlike a mutual fund, your "units" cannot be sold or withdrawn.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 The Crown College of the Bible, we have two pooled income funds available: (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
The Crown College of the Bible 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.
