A pooled income fund is a type of mutual fund whereby the proceeds are given to selected charities and/or donors. After the investor donates his money and securities, quarterly dividends are paid to each donor that is directly proportionate to the amount donated as a percentage of the whole fund. When a particular donor dies, the remains of his original investment go to a charity. A pooled income fund is advantageous for charities seeking to spur donations, as well as simplifying the charitable donations process. It is also beneficial for donors in that all cash donations are tax-exempt, and not all securities donated are subjected to the capital gains tax. Investors also receive a charitable deduction every year they donate to the pooled income fund, hence lowering their taxable income. Further, it provides a lifetime cash stream for up to two beneficiaries, which can include the investor(s).