Policies
The American Red Cross serves as Trustee of the pooled income fund. The American National Red Cross Board of Directors of the American National Red Cross retains control over the Fund. The investment and administrative policies of the Fund will be determined by the American Red Cross in cooperation with the Fund’s Co-Trustee. The pooled income fund will be administered in accordance with all Federal Government regulations.
Minimum gift
The minimum initial gift is $5,000. If a donor gives successive gifts for the pooled income fund, the minimum amount is $1,000.
Minimum age
For any portion of a gift, the maximum number of income recipients in succession is two. The minimum actuarial age of an income recipient(s) on the date that payments start is 65.
Income payments
The Fund pays only the net income earned and never uses principal to make income payments. Each month, the beneficiaries receive a proportionate share of the fund’s income, determined by the fund’s variable rate of return.
The American Red Cross may elect to make estimated monthly payments with an extra "truing-up" payment at the end of the year.
Signature and Approval Authority
The Chief Development Officer delegates signature and approval authority to the National Headquarters Vice President of Development and National Headquarters Director of Gift Planning. Documentation of delegation must be retained by the Gift Planning unit to facilitate any subsequent auditing requirements. The pooled income fund agreements will be signed on behalf of the American Red Cross by the National Headquarters Director of Gift Planning (all supervisors above the level of National Headquarters Director of Gift Planning also have signature authority.)
Pooled Income Fund Investments
The Pooled Income Fund is invested in a custom bond portfolio.
Tax Forms
Annually, the American Red Cross will notify pooled income participants of the Investment performance of the Fund. Donors will receive a Schedule K–1 tax form annually.
