Many clients wish to have their own charitable organizations to which they can make donations of property and money and later decide the charitable purpose to which it will be dedicated. This can be done by setting up a charitable foundation that qualifies as a charitable organization under Section 501(c)(3) of the Internal Revenue Code. The individual will receive an income tax deduction for the fair market value of assets contributed to the foundation, within certain limits. There is often an advantage to transferring appreciated assets to a charitable foundation since it results in a deduction for the full value of the appreciated asset, within certain limits, and it avoids the payment of capital gains tax on the sale of the asset. The foundation can survive beyond the death of it's founder and can be the beneficiary of his estate, thus reducing or eliminating federal estate tax liability.