ILLINOIS AUDUBON *B Ui ae 
Si. rigs bier Message 
The Illinois Audubon Society is planning to establish a Pooled 
Income Fund, the primary purpose of which would be to permit 
donors to make significant tax deductible contributions to support 
the Society and its activities, while retaining the right to receive 
income from such contributions. 
A minimum contribution of $4,000 or $5,000 may be required. 
The contributions of many donors would be pooled in the Fund 
and invested by an independent trustee. The investment objective 
would be to obtain a high income yield. The income would be divid- 
ed and paid quarterly to each donor (or the person designated by 
him to receive the income) based on the proportion of his contribu- 
tion to the total Fund. At the donor’s death (or at the death of the 
person designated by him to receive the income), the current value 
of his share of the Fund would be paid to the Society for its general 
charitable purposes or for the specific purpose designated by the 
donor at the time of his contribution. 
The donor would receive a U.S. income tax deduction in the 
year the contribution is made equal to the present actuarial value 
of the remainder interest which will eventually pass to the Soczety. 
A donor might also increase his current income from inyest- 
ments, without incurring a capital gains tax, by donating to the 
Fund, low yielding appreciated securities which, if sold, would result 
in long-term capital gain. The amount of the deduction would be 
based on the appreciated value of the securities at the time of the 
contribution, yet the capital gain would not be taxed either to the 
donor or to the Society when the securities are sold and reinvested 
by the Fund. 
At the death of the donor, his interest in the Fund will be 
included in his gross estate for U.S. estate tax if he reserves an 
income interest (or the right to revoke the income interest of 
another person). However, the donor’s estate will be entitled to 
an offsetting estate tax charitable deduction for the value of the 
interest passing to the Society, so there should be no estate tax on 
the donor’s share of the Fund if no income interest will pass to 
someone else at the donor’s death. If the donor is survived by a 
spouse and chooses to take advantage of the maximum marital 
deduction for estate tax purposes, the inclusion of the donor’s in- 
terest in his gross estate might result in an increase in the estate 
tax marital deduction. 
