A pooled income fund is a type of charitable trust that is managed by a nonprofit organization, such as a university or a charity. The fund allows donors to make charitable donations by transferring assets, such as cash or securities, to the fund. The nonprofit then invests the assets in a diversified portfolio of stocks, bonds, and other securities, and pays the donor a proportionate share of the income generated by the fund. The donor receives a tax deduction for the value of the charitable gift, and the nonprofit uses the income generated by the fund to support its charitable activities.

Pooled income funds are typically structured as irrevocable trusts, which means that the donor cannot change the terms of the trust once it is established. However, the donor can receive income from the fund for their lifetime, and can name one or more beneficiaries who will receive the remaining assets in the fund after the donor's death. This allows the donor to make a charitable gift while also retaining an income stream during their lifetime, and providing for their loved ones after their death.

Pooled income funds are subject to certain rules and regulations under the Internal Revenue Code, including requirements regarding the distribution of income and the types of assets that can be contributed to the fund. Donors should consult with a qualified financial advisor and tax professional before establishing a pooled income fund or making a charitable donation.