The Pooled-Income Fund is a gift plan for donors giving cash, securities, or other assets to Duke University, which is then invested in a large, diversified portfolio. The donor receives income from the fund proportionate to the value of his or her contribution, as well as an income-tax deduction based on the estimated principal that will be left to the charity. Obtaining a "unit" in a pooled-income fund is similar to buying a share of a mutual fund.

Like gift annuities, pooled-income funds appeal to donors who want to earn income on stock or other assets and escape capital-gains taxes. Unlike the annuities, a donor's income from a pooled-income fund is tied to fluctuating interest rates. That means that in the long run, donors may receive larger earnings than they do from annuities, but may not do as well in the short term. As a result, the funds tend to appeal to younger people who are more willing to take risks with their investments.