Inspired by Gates’ and Buffet’s philanthropic generosity, but don’t have billions to give? Donor-advised funds offered by firms such as Fidelity, Vanguard, and Charles Schwab simplify charitable giving with an entry point as low as $10,000.

The donor-advised funds are a streamlined alternative to the cost and complexity of starting a private foundation. According to The Journal of Financial Planning, the donor receives up to three tax benefits:

1. Immediate income-tax deduction
2. Avoid capital gains on appreciate property
3. Reduce value of estate by amount of excluded asset

Assets in funds exceeded $15 billion in 2005 (source: Chronicle of Philanthropy) and are growing rapidly. Financial institutions are responding with lower fees as consumer interest increases. Donors avoid the hassle of filing for tax-exempt status with the IRS and establishing a board of directors.