A pooled-income fund is a trust created and maintained by a public charity, rather than a private donor. All of the following statements concerning the features of a pooled-income trust are correct, EXCEPT:

(Topic 69)

The trust principal may not be invaded to make up a deficiency in income for payments to the income beneficiaries.

Each noncharitable income beneficiary must receive a pro-rata share of the funds income annually.

The property transferred by the donor is commingled (pooled) with the gifts from all the other donors.

The fund as the right to invest in any type of security it wishes.

The donor must contribute an irrevocable remainder interest to the charity that maintains the trust.