3.8.6 Basic Quiz -- Terminating or Modifying a Pooled Income Fund

Due to high returns in the last several years, pooled income funds are a good choice for donors.

True False

If a donor and charity are unhappy with the operation of the pooled income fund it may be possible to convert the pooled income fund into a charitable gift annuity.

True False

If a two-life pooled income interest is held by a husband and wife, then a transfer of that income interest for a gift annuity will require both the husband and wife to irrevocably give their current and contingent income interests to charity.

True False

There is a specific provision in the Code that authorizes the conversion of a pooled income fund to charitable gift annuities.

True False

In order for a PIF interest to be converted to a gift annuity, all of the beneficiaries of the pooled income fund must agree to have their interests converted to charitable gift annuities.

True False

In general, a pooled income fund is a better vehicle than a charitable gift annuity or a charitable remainder trust.

True False

If pooled income fund interests are converted into charitable gift annuities, the annuities do not have to comply with the 10% minimum deduction rule.

True False

Pooled income funds function similar to mutual funds. Yet, they qualify for an exemption under Securities and Exchange Commission guidelines.

True False

The Philanthropy Protection Act of 1995 requires charities to provide disclosures to donors whom contribute to their funds.

True False

Sec. 104 of the Uniform Principal and Income Act defines income as both ordinary income and a prorated allocation of capital gain.