Table: Philanthropists' Choice

A look at the trade-offs of different types of Supporting Organizations:TYPE IADVANTAGES

Tax break is equivalent to direct donation; no annual payout requiredTRADE-OFFS

You must give a majority of board seats to charitiesTYPE IIIADVANTAGES

Tax break is equivalent to direct donation; the donor can select both family and independent board membersTRADE-OFFS

It must fund 10% of a charity's budget or underwrite a big part of a project; must distribute 85% of its income annually--one-third to primary charity; beneficiaries can force open books

(Type II is generally used by institutions, not individuals.)

Data: BusinessWeek; Jeffrey Davine, Mitchell Silberberg & Knupp