Pooled Income Funds

Albert P. Delacorte '35

Albert P. Delacorte ’35 helped endow scholarships for minority students through Princeton’s pooled income fund.

Princeton’s pooled income funds invest contributions from a number of donors and make lifetime, quarterly payments to beneficiaries based on their share of the income earned by the fund. Donors may designate up to two beneficiaries -- spouses, for example, or children and grandchildren -- and Princeton eventually receives the remaining share.

Princeton’s pool is overseen by some of the same talented investment professionals who manage the University's endowment. Joining a pooled fund requires a minimum gift of $25,000. After that, donors may add $1,000 or more as often as they wish.

Benefits

  • Provides lifetime income to yourself and/or another beneficiary.
  • You can donate your highly appreciated securities without incurring capital gains tax.
  • Assets contributed are removed from your taxable estate, unless beneficiaries other than you and your spouse are involved.

Princeton offers two pooled income funds for new donors, each with a separate investment goal.

  • Income Fund: Invests primarily in bonds. Objective is to provide high current income. 
  • Tiger Fund: Invests primarily in stocks. Objective is to provide long-term growth in unit value resulting in higher income over the long term.

The information presented on these web pages is not offered as legal or tax advice. You are urged to seek the advice of your tax advisor, attorney, and/or financial planner to make certain any gift you are considering fits well in your specific circumstances.