Newsletter Archives

Pooled Income Fund

September - October 2001

There are a number of options for charitable giving other than an outright gift. These options, often referred to as "deferred" giving plans, usually allow the donor to retain the benefit of the donated funds, with a gift to charity at a later date. The advantage of such plans is that the donor can receive an immediate income tax deduction for the value of the donor's gift and can avoid the payment of any capital gains tax on a gift of appreciated property.

The simplest, and perhaps most common, form of deferred giving is the pooled income fund (PIF). These funds, established by charities to encourage deferred giving, are usually offered by universities, churches and other major charitable groups. In return for the donor's contribution of cash or property to the PIF, the PIF agrees to provide the donor and/or the donor's spouse (or any two individuals chosen by the donor) with a life income. There is no guarantee of the amount of income, as it is based upon the investment return of the PIF. The PIF will provide the donor with a history of its past investment results, as well as its investment philosophy, to give the donor some idea of the income the donor can expect. At the death of the donor and/or the donor's spouse, the income interest will terminate, and the donor's capital account in the PIF will be given to the sponsoring charity.

A PIF has clear tax advantages. The donor will be entitled to an income tax deduction in the year in which the donor makes the donor's contribution to the PIF. The amount of the deduction is the value of the interest which passes to the charity at the donor's death or the death of the donor's spouse. This amount will vary, depending upon the donor's life expectancy and the investment return of the PIF. As an example, if a 60-year old donor transfers $100,000 to a PIF which has a 6.0% return, and retains a life income interest, the amount of his charitable deduction will be $35,033.

Nitai H.Pathak

There are also advantages to contributing appreciated property, such as stock, to a PIF. Although the stock will be valued at its fair market value in determining the donor's charitable deduction, no capital gains tax will be imposed on the donor or the PIF. A contribution to a PIF will also help to reduce the donor's estate tax, since the amount passing to the charity after the donor's death will be deductible for estate tax purposes. Nitai H. Pathak, CPA, MST, of Kling, Lee & Pathak, CPAs, Cerritos, CA 562-402-8610 .

PIF Trusts

PIF Booklet

Hindu Heritage Endowment refers to pooled income funds as PIF trusts and currently offers two PIF trusts to its donors, each with a different mix of stocks and bonds. PIF Trust #1 has an allocation of 80% bonds and 20% stocks and is appropriate for income beneficiaries who are older. PIF Trust #3 has an allocation of 45% bonds and 55% stocks and is appropriate for income beneficiaries who are younger. Both are administrated by First Hawaiian Bank as corporate trustee. HHE has prepared a folder with many examples of instances in which the use of PIF Trusts are appropriate, such as a gift to a new born child or a gift to a newly wed bride or groom. The folder includes a fifteen-page booklet, "The Pooled Income Fund," produced by R&R Newkirk which contains a comprehensive description of this deferred giving option. To receive a copy of the HHE folder on PIF Trusts, simply check the box on the tear-out card requesting information on the pooled income fund and mail it to us or e-mail hhe@hindu.org.

As a public service, HHE occasionally will offer the opinions of financial planners. However, it endorses neither these advisors nor their counsel, and recommends that all individuals seek professional advice from several sources before making important long-term decisions.

Recent Endowment Contributions

Kauai Aadheenam Monastic Endowment

Vinaya Alahan   

Chandran Nagalingam   

Total   

 

Iraivan Temple Endowment

Prakash Kumar Balasubramanian   

Paul Yogananda DeSantis  

Gregg Lien   

Mogan Ramasamy   

Haymamanili Subramaniam   

Niraj Thaker   

Other Donations   

Total  

 

Kauai Aadheenam Annual Archana Fund

Other Donations   

 

Hinduism Today Distribution Fund

Chellappa Deva   

Balu Devado   

James Jay Devlin  

Ravindra Doorgiat   

Annapoorani Ganesan   

Chitravelloo Gunasegaran   

Ramu Govindasamy   

Tara Barrie-Hull  

Isanah Kameni   

Egilen Koothan   

Amravaddee Kownden   

Thanesh Kumar Kumaravel   

Christian Langers  

Thavamalar Lingam   

Alistair McElwee  

Manmohan Mittal   

Mardaymootoo Mootoosamy   

Nalakini Niranjana   

Logadassen Peruman   

Pakion Vedee Peruman   

Nishant Lakshmaiah Peruri   

Parthasaraphi Rajagopalan   
Syam P Reddy   

Selvaraj Sanjeevee 

Lavanadevi Sivam  

Sivadas Sivarajah   

Guha Skanda   

Womana Skanda

Robert Sorrells   

Raghu Srinivasan   

Mahesh Srivastava   

Ganesammal Supiah   

K. S. Thamilarasi   

K.D. & A.D. Williams   

Per Winther   

Other Contributions   

Total  

 

Hindu Businessmen's Association

Vel Alahan   

Paramaseeven Canagasaby   

Manogaran Mardemootoo   

Easvan Param   

Janaka Param   

Other Contributions   

Total   

 

Boys School for Iraivan Priesthood

Indra Dhaksinamurthi  

Christian Langers   

Bala Sivaceyon  

Total   

 

Mathavasi Medical Fund   

Gowri Nadason  

Chandran Nagalingam   

Vayudeva Varadan   

Matthew Wieczork   

Total   

 

Tirunavukkarasu Nayanar Gurukulam

James A. Babson   

Aran Sendan   

Total  

 

Sri Subramuniya Kottam

Indra Dhaksinamurthi  
Andrew Schoenbaum   

Total  

 

Malaysian Hindu Youth Education

Chandran Nagalingam  

 

Kumbhalavalai Ganesha Temple Fund

James A. Babson   

Indra Dhaksinamurthi   

Manoharan Navaratnarajah  

Total   

 

Hinduism Today Endowment

Alistair McElwee   

 

Hindu Orphanage Endowment

Ajit S Adhopia   

Lila Shakti Devi   

Tara Barrie-Hull   

Ramakumar & Sailaja Kosuru  

Christian Langers  

Satya Palani   

Jutikadevi Raja   

Mogan Ramasamy   

Alex Ruberto   

Matthew Wieczork   

Total   

 

Loving Ganesha Distribution Fund

Manoharan Navaratnarajah    

 

Saiva Agamas Trust Fund   

Matthew Wieczork   

 

Mauritius Spiritual Park

Anonymous   

 

Mauritius Dharmasala   

Anonymous   

 

Nepal Kumari Goddess Education Fund   

Jutikadevi Raja    

Niraj Thaker 

Total 

 

Thank You Gurudeva Fund

William Raymond Atwood    

Maria Cristina Berisso    

Aravindraj Chandrasekaran    

Stephanie Corgatelli   

Chellappa Deva   

Amarnath Devarmanai   

Panshula Ganeshan    

George Keoki Gosselin    

Toshadeva Guhan    

Laurie Ho    
Shirley Howie   

Rani Kellum  

Ganesh Krishnan   

Appasamy Kuppusamy    

Christian Langers    

Gregg Lien    

Chandran Nagalingam    
Manoharan Navaratnarajah    
Shanta Devi Periasamy    
Alex Ruberto   

Eesan Sankara    

Sivakumar Saravan    
Sivaneswaran Sockanathan    

Raghuraman Srinivasan    

Vignesh Sukumaran    

Vayudeva Varadan    

K.D. & A.D. Williams   

Roy Eugene Woodward    

Total   

 

Saivite Hindu Scriptural for the Blind

Damara Shanmugan    

 

Manitha Neyam Trust Fund

James A. Babson    

N. Balasubramaniam    

Bala Sivaceyon    

Total    

 

Kapaleeshwara Temple Fund

Vasudevan Jayanthi    

Vellore B. Padmavathy    

Total   

 

Taos Hanuman Fund   

Charlette A Smith   

 

Pazhassi Balamandiram Orphanage Fund

Niraj Thaker    

 

Positive Discipline Education Fund

Vinaya Alahan    

 

Suntheram Family Trust Fund

Devagharan Nair    

 

Kauai Aadheenam Renovation Endowment

Chandran Nagalingam    


PIF Trust

Gowri Nadason    

Satya Palani    

Barathy Sockanathan    

Total    

 

Total Contributions   

 

Funds at Market Value April 30, 2001   

 

Total Endowment Funds   

 

Total Pooled Income Funds    

 

Grand Total  

 

 

500.00

210.00

710.00

 

 

10.00

216.00

4,000.00

50.00

25.00

46.00

20,217.58

24,564.58

 

 

54.17

 

 

381.23

160.00

90.00

35.66

55.26

102.90

50.00

659.85

178.87

14.26

21.43

62.37

50.00

49.04

100.00

132.00

21.40

65.00

92.72

10.70

521.00

104.00
84.00

49.93

102.00

104.44

42.00

10.00

108.00

84.00

134.00

177.54

75.72

108.36

63.00

248.32

4,457.00

 

 

1,100.00

12.86

48.14

1,282.05    

24.00

45.62

2,512.69

 

   

15.00

100.00

52.50

167.50

  

 

90.00

210.00

36.00

60.00

396.00

 

  

100.00

51.00

151.00

 

   

15.00
20.08

35.08

 

 

210.00

 

  

100.00

30.00

50.00

180.00

 

  

100.00

 

   

156.10

25.00

103.00

20.00

100.00    

8.00    

108.00    

50.00    

30.00    

150.00    

750.10

 

   

50.00

 

  

35.00

 

   

281.50

 

  

281.50

 

  

108.00

57.00

165.00

 

 

50.00

50.00

11.00

200.00

25.00

216.00

20.00

20.00

20.16

100.00
44.00

20.00

101.00

19.35

150.00

4,000.00

210.00
100.00
230.00
30.00

301.00

150.00
20.00

5,000.00

108.00

75.00

108.36

2.00

11,380.87

 

   

100.00

 

   

100.00

500.00

11.82

611.82

 

   

200.00

150.00

350.00

 

   

25.00

 

   

10.00

 

 

85.00

 

   

1,500.00

 

  

210.00


  

29.85

50.00

20.00

99.85

 

$49,473.66

 

  

 

$3,251,964.88

 

$180,311.57

 

$3,432,276.45

 

MISSION STATEMENT

Hindu Heritage Endowment is a publicly supported, charitable organization recognized as tax exempt by the IRS on April 22, 1994. Employer ID 99-0308924. Founded by Satguru Sivaya Subramuniyaswami, its philanthropic mission is to provide secure, professionally managed financial support for institutions and religious leaders of all lineages of Sanatana Dharma.

PROFESSIONAL ADVISORS

Halbert/Hargrove, Investment Counsel; Sonoda & Isara, LLP, CPA. HHE is a member of the Council on Foundations, an association of more than 2,000 foundations which interprets relevant law and management and investment principles, and of the National Committee on Planned Giving, the voice and professional resource for the gift planning community.

I want to participate. Where should I Send My Donation?

You may send your gift to an existing fund, create a new Endowment or request information through the address below.

Donations may be made online at www.hheonline.org or use the HHE tear-out card in the HINDUISM TODAY magazine to join our family of benefactors who are Strengthening Hinduism Worldwide. Thank you.

 
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Use Giving Assistant to save money and support Hindu Heritage Endowment