HWS Capital Campaign :: Supporting the Campaign : Pooled Income Fund

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A gift to the pooled income fund allows you to retain lifetime income for yourself, or those whom you designate, while participating in a balanced investment portfolio. The Colleges' pooled income fund provides growth, as well as a yield that may increase your current income.

The pooled income fund combines and invests your gift with contributions made by others and pays you a proportionate share of the fund's yield. Your charitable deduction will be equal to the present value, which is the amount the Colleges ultimately may expect to receive. If you donate appreciated securities, you will not recognize capital gain on the gift.

Pooled Income Fund Summary:

Minimum gift is $10,000.
Donor may add to the fund in $5,000+ increments at any time.
Minimum age is 50 years.
Income payment is the beneficiary's share of the net income.
Income payments are quarterly.
One or two beneficiaries may receive income. Income is taxed as ordinary income.
Charitable deduction is the present value of the remainder interest.
May be funded with cash or marketable securities (excluding tax-exempt bonds).
Advantages to donor:
- Income tax charitable deduction when making the gift
- Avoids all capital gain tax
- Federal estate tax savings
- Potential growth of principal and income
- Additional contributions can be made

Thank you for remembering Hobart and William Smith Colleges.

Recent HWS Example:
Dr. Gifford Doxsee '46

Dr. Gifford Doxsee '46 attended Hobart for one year before entering the U.S. Army. After his time in the service, he enrolled at Cornell where he received his undergraduate degree. Through the years, he and his wife, Mary, made contributions to their respective alma maters. Their preferred way to give back to their schools was through pooled income funds.

Though he did not graduate from Hobart, his time here was not forgotten and in 1996, Dr. Doxsee made his first pooled income fund gift to the Colleges. He felt that he needed to contribute to the one liberal arts institution he attended, although he has received degrees from other prestigious educational institutions.

"Hobart and William Smith Colleges hold a very significant place in the U.S. Educational system," says Doxsee. "Small is beautiful and small liberal arts colleges are very important."

Over the past nine years, Doxsee has made thirteen gifts to the Colleges’ pooled income fund. When asked why he prefers to make philanthropic contributions via the pooled income fund, he cites four reasons:

He receives an immediate tax advantage.
He receives quarterly income, usually higher than what he receives from his Blue Chip stocks.
He can fund the gift with appreciated securities and avoid any capital gain tax.
It is a very easy way to make a gift.

The end goal of his generosity to the Colleges will be the creation of the Dr. Gifford '46 and Mary Doxsee Endowed Scholarship Fund, which will help students attend these small, beautiful liberal arts colleges.

Please note, individual financial circumstances will vary. The information on this site does not constitute legal or tax advice. As with all tax and estate planning, please consult your attorney or estate specialist. All material is copyrighted and is for viewing purposes only. Use of this site signifies your agreement with the terms of use. This Planned Giving section has been developed for Hobart and William Smith Colleges by Future Focus.