For those who don't want to be as actively involved in the ongoing operations of their charitable plan, a donor-advised fund may be a better choice, she says. "It really depends on what their needs and priorities are," she says. "The options could range from annual giving to creating a donor-advised fund."

Although she adds that tax deductions usually are not the primary reason that clients engage in charitable giving, they sometimes can drive a strategy.

"As an example, if they're most strongly motivated by tax deductions, we would not recommend a family foundation," she says. "That's the least tax-advantaged of any of those options."

Some advisors are finding that gift annuities are fitting the needs of many older clients who want to give, but need the income off their assets during their lifetime. The gift annuities are contracts between donors and charities, in which the charity takes control of the donated assets and promises a lifetime annuity to the donor.

Because the payout goes up with the age of the donor and are simple in their operation, advisors say they are often suitable for retirees.

"I use them a lot with seniors," says Rehl. "It's a wonderful way to get out of appreciated assets."

In one case, a couple in their seventies had farmland in Illinois that was worth about $720,000, with a cost basis of $74,200. They decided to put it into an immediate gift annuity, which, with the wife at 77 and the husband at 79, resulted in an annual payout of $49,680, Rehl says.

The move also resulted in a partial tax deduction. Of the payout, $3,513 is tax-free and $30,716 is subject to a 15% capital gains tax rate, with the rest subject to ordinary income tax.

"Most of the people who use them are retired or real close to retirement and don't want the hassle" of dealing with a foundation or donor-advised fund, she says. "They just want to get their check every month and that's it."

The economic downturn has helped fuel a surge in the use of charitable gift annuities, as investors look for stable income in the market, says Claudia Sangster, director of philanthropy services with Harris myCFO Inc., the family office division of Harris Private Bank serving clients with $25 million or more in assets. "You don't have any upside potential and it's not a hedge against inflation, but it does protect income," she says.