In today's Wall Street Journal:  Family Charities Shift Assets to Donor Funds; Givers Gain Cost, Tax Benefits But Sacrifice Some Control; Leaving Paperwork to Others, by Mike Spector:

Frustrated by the upkeep, philanthropists are increasingly unwinding their private foundations into donor-advised funds, which invest assets and make grants to charities from individual accounts based largely on donors' recommendations. Some have been spurred by tough economic times: Donor-advised funds can cost thousands of dollars less to maintain than foundations — a factor that has taken on increased significance as many foundations' assets have plunged.

The funds, which operate as independent charities, have other advantages besides allowing donors to take an immediate tax deduction after making contributions. Donors advise the fund on where the grants should go, but the funds don't have to make distributions as often as a foundation would. Donors can also give many types of assets — including cash, securities and even art — depending on the fund's specific rules.

Donor-advised funds normally have their own staff, which often pool investments on behalf of individual donors and attend to all necessary paperwork. That allows them to charge fees that are usually lower than the money you'd spend hiring independent lawyers, accountants or other staff to administer a foundation. The annual fees for a $50,000 donor-advised fund at Vanguard, for example, are only $425, says Benjamin Pierce, the charity's executive director.