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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