Multiple donors are able to donate to charity at once through a pooled income fund, which provides tax benefits to donors while also letting them donate to charitable organizations. A pooled income fund requires its own tax ID, also known as employer identification number, because it isn’t under the control of any of the donors or of the charity itself. Instead, it’s generally managed by a third party and held by another financial institution, to the ultimate benefit of the charity and the donors.
Pooled income funds are generally created by a financial institution connected with the charity, and the fund is intended to allow donors the ability to pool their money for charitable purposes. The donations themselves are no longer under the control of the donors, but both the donors and the charity itself will benefit from the income derived from the assets. Donors need to give their own, unencumbered, assets into a pooled income fund. It is similar in nature to other types of charitable trust, such as charitable remainder trusts, and charitable annuity trusts.