What is a defining feature of a pooled income fund?

A pooled income fund is indeed a type of charitable trust that allows multiple donors to contribute to a single investment pool. This structure is beneficial as it combines contributions to invest collectively, allowing for greater investment opportunities than individual donations might allow. The income generated from these investments is then distributed to the donors or their beneficiaries, typically for a defined period or until they pass away, at which point the remaining assets in the fund go to the specified charity.

This feature distinguishes pooled income funds from other charitable giving mechanisms because it facilitates charitable giving while also providing a stream of income to the donors or their beneficiaries during their lifetime. The pooling of donations into a single investment vehicle allows the fund to benefit from economies of scale, potentially leading to more robust investment returns for participants compared to individual investments.

In contrast, investments being segregated for each donor applies to a different structure, and while some pooled income funds might have minimum donation levels, it is not a defining feature of the fund type itself. Lastly, terms of duration may vary, but they do not specifically define the essence of a pooled income fund as a charitable trust does.