In Brief

By Carole Buia

'TIS THE SEASON: TAXES AND GIVING O.K., so you're not Bill Gates, and you don't have a charity named after you. But you could start a "poor man's foundation." Such charities, better known as donor-advised funds, allow investors to make irrevocable contributions with relatively low minimums. Generally, these funds pool donations into portfolios; the donor then "advises" the fund on how to spend the money. And if you start one before Dec. 31, you can take the tax deduction--typically up to 50% of your adjusted gross income for cash gifts and 30% for appreciated properties, such as stock--on your 2000 return.

You can set up a fund through one of more than 550 community foundations or through one of the newer charities being launched by most major mutual-fund behemoths. They have similar starting balances and management fees. Community foundations have been around for more than 85 years. Visit cflocate.com to find one in your area. They're more flexible than the Fidelitys of the world, when it comes to accepting illiquid assets like real estate and art. But their biggest advantage is that they know--and live in--the community they serve. In contrast, a charity fund like Fidelity's has the online advantages of allowing donors to view their accounts and make grant recommendations. They also offer more flexibility in choosing an investment strategy. Still, no matter how you slice it, either is a win-win solution for those wanting to improve their communities while gaining asylum from capital-gains taxes.

--By Carole Buia

Some large charitable-gift funds and community foundations

NAME ASSETS TO OPEN FEES

Fidelity Charitable Gift Fund 2.6 billion $10,000 1.45%-1.68%

New York Community Trust 2 billion $5,000 .02%

The Cleveland Foundation 1.6 billion $10,000 .5%

Vanguard Endowment Program 196 million $25,000 .65%-.75%