7/17/06

You too can be like Warren Buffett

You can be like Warren Buffett, even without his billions. The world's second-richest man is presently in the process of turning over the bulk of his fortune to charity.

Many in the philanthropic community expect Buffett's magnanimous gesture to rub off on others -- even those of modest means.

"No question," says Tom Wilcox, president of the Baltimore Community Foundation. "Every time people hear about other people being philanthropic it inspires them to do the same thing. ... The capacity for people to be generous is limitless once they're shown how to do it."

One such option is a Donor-Advised Fund, popular with many charities. Essentially, a person donates cash or appreciated securities or property to the donor-advised fund and gets an upfront tax deduction. And the donor can recommend which charities or programs receive donations and how much.

[Excerpt of an article by Eileen Ambrose, The Baltimore Sun]

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