Newsletter Archives

Pooled Income Fund

October - November - December 2002


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.

March to May Endowment Contributions

Kauai Aadheenam Monastic Endowment
Arul Karttikeya $112.66
Anshul Mohaan 33.00
Total 145.66
 
Iraivan Temple Endowment
Total $30,000.00
 
Kauai Aadheenam Annual Archana Fund
Yoganathan Palani 14.05
Girish Skanda 14.00
Lavanadevi Sivam 51.00
Total 79.05
 
Hinduism Today Distribution Fund
Anonymous 1,001.00
Uma Devi Arimuthu 10.00
Appamal Athimulam 52.56
Ramaswamy Balakrishnan 751.00
Rathi Devi Batumallah 200.00
Veerasamy Batumallah 165.00
Anita Bhattacharjee 26.00
Rohit & Bisram Deocharan 33.00
Banu Devi Deva 146.00
Chellappa Deva 414.65
Umaiyal Devasegayam Family 52.22
Mary Rose Gallagher 199.00
Carol Guhan 27.00
Mohana Sundari Gunasegaran 13.15
Suguneswary Gunasegaran 109.52
Emmaline Jordan 101.00
Isanah Kameni 26.30
Amravaddee Kownden 45.17
Ravichandran Krishnan 270.00
Thanesh Kumar Kumaravel 163.15
Kody Kunda 896.00
Thavamalar Lingam 78.35
Aaran Mohann 241.50
Vishwanaden Moorooven 48.39
Logadasan Murugesu 175.00
Nalakini Niranjana 360.00
Chandran Param 87.59
A. Paranthaman 10.00
Syam P. Reddy 126.00
Marilyn Reid 189.00
Guha Skanda 168.00
Womana Skanda 24.00
Dasa Sivam 172.00
Lavanadevi Sivam 153.00
Dinesh Sadhwani 198.00
Raghuraman Srinivasan 252.00
Ganesammal Supiah 161.96
K. S. Thamilarasi 44.38
Shivani Vinayaga 237.73
Sudha Vinadharan 157.95
Per Winther 63.00
Total 7,649.57
 
Hindu Bussinessmenís Association
Vel Alahan 450.00
Paramaseeven Canagasaby 19.49
Easvan Param 1,696.93
Janaka Param 57.00
Manogaran Mardemootoo 32.27
Sivajnani Nagappan 28.45
Total 2,284.14
 
Boys School for Iraivan Priesthood
Indra Dhaksinamurthi 45.00
Bala Sivaceyon 39.18
Total 84.18
 
Mathavasi Medical Fund
Arul Karttikeya 834.97
Anshul Mohaan 34.00
Gowri Nadason 90.00
Vayudeva Varadan 18.00
Matthew Wieczork 60.00
Total 1,036.97
  
Tirunavukkarasu Nayanar
Aran Sendan 102.00
 
Kauai Aadheenam Renovation Endowment
Anshul Mohaan 33.00
 
Sri Subramuniya Kottam
Andrew Schoenbaum 30.00
 
Kumbhalavalai Ganesha Temple
Indra Dhaksinamurthi 45.00
Manoharan Navaratnarajah 75.00
Total 120.00
 
Dancing with Siva Endowment
Thomas M. Wazney 10.00
 
Hindu Orphanage Endowment
Ajit S Adhopia 110.30
Lila Shakti Devi 75.00
Tara Barrie-Hull 56.63
Ramakumar & Sailaja Kosuru 30.00
Christian Langers 100.00
Arun J Mehta 500.00
Natraj Narayanswami 50.00
Claiborne & Marilyn Porter 35.00
Ganesan & Rajalakshmi Ramalingam 210.00
Alex Ruberto 45.00
Wendy Schuljan 20.00
Calvin & Elizabeth Wettstein 50.00
Matthew Wieczork 211.00
Total 1,492.93
 
Loving Ganesha Distribution
Christian Langers 100.00
Manoharan Navaratnarajah 75.00
Matthew Wieczork 30.00
Total 205.00
 
Saiva Agama Trust
Matthew Wieczork 105.00
 
Positive Discipline Education Fund
Vinaya Alahan 255.00
 
Nepali Kumari Goddess Fund
Christian Langers 100.00
 
Thank you Gurudeva Fund
Anonymous 295.00
Rita Balachander 50.00
Venkatakrishnan Balaji 10.00
Maria Cristina Berisso 250.00
Stephanie Devi Corgatelli 200.00
Amarnath Devarmanai 324.00
Anne Goodbody 50.00
S Kumarakulasingam 100.00
Thungaveloo Mariappan 19.05
Manoharan Navaratnarajah 150.00
Shanta Devi Periasamy 230.00
Jutikadevi Sivaraja 108.00
Alex Ruberto 45.00
Aran Sambandar 108.00
Chamundi Sabanathan 1,008.00
Sivadas Sivarajah 231.00
Martine Thom 251.00
Vayudeva Varadan 36.00
Total 3,465.05
 
Udayan Care Endowment Fund
Jutikadevi Sivaraja 108.00
 
Saivite Hindu Scripture for Visually Impaired
Ganesan & Rajalakshmi Ramalingam 200.00
 
Manitha Neyam Trust Fund
N. Balasubramaniam 300.00
Bala Sivaceyon 15.69
Total 315.69
  
Kapaleeshwara Temple
Vasudevan Jayanthi 300.00
Natraj Narayanswami 25.00
Rakesh Sood 50.00
Total 375.00
 
Manjung Hindu School
Rakesh Sood 50.00
Natraj Narayanswami 26.00
Jutikadevi Sivaraja 108.00
Total 184.00
 
Pazhassi Bala Endowment
Natraj Narayanswami 52.00
Rakesh Sood 50.00
Total 102.00
 
PIF Trust
Gowri Nadason 30.00
Satya Palani 75.00
Total 105.00
 
Total Contributions $63,588.82
 
Funds at Market Value May 31, 2002
 
Total Endowment Funds $3,300,178.82
 
Total Pooled Income Funds $161,231.67
  
Grand Total $3,461,410.49

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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Manitha Neyam Trust Fund

Supports the Sivapoomi Elders Home, a home for the elderly in Kondavil, Sri Lanka.

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Mahajana College Endowment

Supports Hindu religious activities at Mahajana College in Jaffna

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Loving Ganesha Distribution Fund

To distribute free copies of Loving Ganesha around the world

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Kodiswara Satguru Malaysia Travel Fund

Supports travel to and from Malaysia

Planned Giving Guidance

Default Estate Plans in Malaysia Do Not Always Please Survivors

Use Giving Assistant to save money and support Hindu Heritage Endowment