Next year may be an opportune time to promote gifts to a pooled income fund (PIF)! That’s right. The planned giving vehicle that most charities have mothballed for the last 20 years may be poised for a comeback. Why? Read on.
In 2015, the charitable deduction for a gift to a pooled income fund less than three taxable years old will be the highest it has ever been. That is because the deduction for gifts to a “young” fund is based on an assumed valuation rate provided by the IRS, rather than a rate based on the fund’s own net income earning experience. This valuation rate will be just 1.2% in 2015, the lowest it has ever been, and that means that deductions for gifts to young PIFs in 2015 will be the highest they have ever been.