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| Philanthropy |
Three Vehicles for a Vision
Jay Steenhuysen
12/01/2003
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 While private foundations do reserve more control for the philanthropist, a supporting organization delivers superior tax advantages, according to Anderson. The limits of deductibility are higher for a supporting organization than those for a private foundation, and the required annual distribution is much lower. The IRS provides a break for philanthropists who give up a measure of control by including non-family members on their board.
Donor-advised funds present a compelling option to those of us for whom anonymity takes priority over control, and they are especially well suited to making smaller gifts. Offered through local community foundations or sponsored by for-profit financial institutions, donor-advised funds do not require philanthropists to invest time or pay administrative costs, and are designed to accumulate funds for future giving. These funds are also unique in that they allow a philanthropist to make a one-time contribution without falling prey to that charity’s mailing list: The fund’s staff researches the charity and dispenses the gift.
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