Magazine

Table: Philanthropists' Choice


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

TYPE I

ADVANTAGES

Tax break is equivalent to direct donation; no annual payout required

TRADE-OFFS

You must give a majority of board seats to charities

TYPE III

ADVANTAGES

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

TRADE-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


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