But that may not be the most advantageous way, for you or the charity. Many of the alternatives allow your original gift to grow over time. Investors with huge market gains who give away appreciated stock that has been held for at least a year can base their tax deduction on the stock's fair market value without getting socked with the capital gain. Donors who want to create their own giving timetable might consider charitable gift funds. Eighty-five percent of those who contribute to the fund do so by transferring securities.
Some banks offer similar funds.
No matter which charity you select, once you have made an outright gift, the charity calls the shots. Philanthropists who want to control how their funds will be used can set up their own foundation, but the red tape may be too burdensome for everyone except the very rich. Many new philanthropists are teaming up with community foundations. These benefit a particular geographic area and help make giving more personalized. Community foundations and charities can help you design a planned or deferred gift.