The Pooled Income Funds
What is a Pooled Income Fund?
Williams’ pooled income funds provide income to yourself and others (up to 2 income beneficiaries may be named) while also allowing you to make a significant gift to the College.
Williams’ three pooled income funds operate like charitable mutual funds. When you make your gift you are assigned units in the fund you have chosen, and your contribution is commingled with those of other donors for investment purposes. The fund pays you your proportionate share of net income quarterly. When you or the last of your income beneficiaries dies, the principal attributable to your gift is removed from the fund and distributed to Williams.
Williams has accepted pooled fund gifts since 1954, when the first gift was made by H. Schuyler Cole ’24. Since then over 700 other alumni and friends have added their contributions, with investments in the three funds now totaling over $35 million.
A gift of at least $5,000 is required to establish a pooled income fund. Additions may be made with gifts of $1,000 or more. Williams College administers the three pooled income funds, pays all administrative fees, and issues income checks and annual tax statements to donor/participants. The funds are managed by John W. Bristol & Co. of New York, Charlie Mott ’53, President.
 What Are the Advantages?
1. You and/or your named beneficiaries will receive variable income payments for life. Although these payments are usually modest, they typically exceed dividend payments on most publicly traded securities.
2. You will be eligible to receive a charitable income tax deduction for a portion of your gift in the year you make it, with five additional years to take any unused deduction.
3. You will avoid capital gains tax on any appreciated assets you contribute.
4. The assets you contribute will be removed from your estate, which may reduce your estate tax exposure.
5. You can benefit from Bristol & Co.’s professional investment management.
6. Our PIFs are "no load" funds. Williams College assumes all costs.
7. You can help endow the future for generations of Williams College students AND help yourself at the same time!
What Are the Details of the Three Funds?
Pooled Income Fund #I (Balanced/Growth Fund)
- Provides current income as well as opportunities for long-term growth of both income and principal.
- Yields over the past 3 years have averaged 2.727%
Pooled Income Funds #II and #III (Income-Oriented Funds)
- Seeks high current income from a diversified portfolio consistent with the protection of capital.
- Yields over the past 3 years have ranged from 4.765% to 5.002%
- Portion of equities in portfolio is slightly more for Pooled Income Fund #II than for Pooled Income Fund #III.
EXAMPLE (based on 3.6% IRS discount rate)
A 70 year-old alumnus donates $25,000 in appreciated stock, originally purchased for $2,500, to Williams College Pooled Income Fund #I. The donor is the sole beneficiary. The current rate is 2.7%.
| Charitable Deduction |
$17,555 |
| Estimated First Year Income | $675 | | Capital Gains Tax Savings | $6,144 |
How Do I Make a Pooled Income Fund Gift?
Call (413) 597-3538, email the Williams College Office of Gift Planning, or complete the personal illustration form on this website so that we can assist you through every step of the process.
After you have selected your fund, we will send you an agreement package for your review and signature and stock transfer information, if applicable.
Appreciated Securities
Bequests
Pooled Income Funds
Charitable Gift Annuities
Charitable Remainder Trusts
Charitable Lead Trusts
Real Estate
Gifts of Other Assets
How to give other assets, such as: Retirement Plans, Charitable Bargain Sales, Closely-Held Stock, Partnership Interests, Tangible Personal Property, and Life Insurance.
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