Jeff and Gail Kodosky are well-known for their generous contributions to the Central Texas community. For the past 30 years, the Kodosky Foundation has been actively involved in various philanthropic efforts, making a positive impact on our community by investing in numerous nonprofits and institutions.
Not long after the couple relocated to Austin from New York in the late 70s, Jeff co-founded National Instruments (known as NI today) and created a programming language that revolutionized how engineers and scientists measure, test, and control applications. After the success of the company, Jeff and Gail established a private foundation in 1996 to give back to their community and support their favorite causes. This was during Austin’s tech boom, and many company executives were taking a similar path—a private foundation made sense at the time.
It wasn’t until later that Jeff became familiar with the concept of a donor advised fund (DAF) when he joined Austin Community Foundation’s Board of Governors in the early 2000s. Jeff set up a DAF at ACF to “test drive” this giving vehicle and to supplement his family’s charitable donations in addition to their private foundation.
The Kodosky’s passion for philanthropy over the past 30 years has tremendously impacted Central Texas. They have given millions to support STEM education at all levels of learning, bolster the performing arts, and fund various nonprofits and universities in Austin and beyond.
While the foundation was a rewarding outlet for Jeff and Gail’s philanthropic activities, managing a private foundation requires extensive time and resources. The couple managed the foundation independently, which included responsibility for financial operations, legal requirements, and all charitable activities.
As time passed, Jeff and Gail realized that the administrative demands of their family foundation detracted from their genuine passion for charitable giving. Now that Jeff had confirmed that his daughters would not take over managing the foundation, he began to think about succession planning. ACF came to mind because of his long history and trust in the organization.
“I have a lot of respect for the team at the community foundation, and I knew ACF was a good place to consider moving the Kodosky Foundation,” Jeff said.
Last year, Jeff contacted his estate attorney about potentially converting the Kodosky Foundation to the couple’s DAF. He wasn’t sure if it was feasible, but soon found out it was not only possible but relatively simple. Jeff shared, “I was delightfully surprised at how easy it was. I wished I had converted it a few years earlier.”
After some initial conversations, ACF staff prepared a fund agreement that reflected the couple’s goals and allowed them to continue working with their current investment advisor—a unique offering provided for eligible funds at ACF. Shortly after, all of their private foundation assets were transferred to their DAF.
Jeff and Gail are now free to focus on making grants to the causes they care about and let ACF handle the administration. “With a donor advised fund, I can just go online, request grants, and have everything else taken care of by ACF. It’s so much more convenient,” Jeff said.
Reflecting on his philanthropic journey, Jeff has the following advice for local entrepreneurs and tech executives considering a private foundation for their philanthropy: partner with Austin Community Foundation instead. Jeff explains, “If you enjoy the extra work involved and paying more fees, then by all means a private foundation may be right for you. But if you’d rather do away with that part and instead focus on the joy of giving, then a donor advised fund works so much better.”
