The Pooled Income Fund (PIF) is a type of charitable mutual fund or charitable trust[1] that pools the securities or cash separately donated by an individual, a family or a corporation to a charity, which is then invested to provide dividends for both the donor's beneficiary and charity.
[2] The Pooled Income Fund was created by the Tax Reform Act of 1969 and is governed by IRS Section 642(c)(5).
[4] Created in 1969, the Pooled Income Fund (PIF) grew in popularity during its first two decades.
In the 1970s and 1980s, when rates on intermediate-term bonds were well into double digits, PIF managers were able to invest in a combination of stocks and bonds that enabled long-term preservation and growth in principal as well as income payouts up to 10 or 12 percent during those decades.
While a PIF might pay 3%, the standard recommended Charitable Gift Annuities payout rate for a 70-year-old was above 5%.