Creating a Non Columbia Donor-Advised Fund

Creating a donor-advised fund can provide you with immediate tax benefits while making your charitable giving easier for years to come.

How It Works:

You establish a fund at a sponsoring charity. This could be a community foundation, a public charity with a donor-advised fund program, or even one of the well-known investment companies that sponsor donor-advised funds. First, check with the fund sponsor about the minimum contribution to start a fund as it ranges from $5,000 to $25,000. Then, make an initial contribution to start your fund of cash or appreciated assets such as stocks or mutual funds. You’ll get an immediate income tax deduction and some sponsors will even let you name your fund.

Once established, you can suggest that your favorite public charities, such as Columbia University, receive grants from your fund. The grants can be relatively modest or larger for projects such as a capital campaign or a new building.

You do not get an additional tax deduction for these grants. You can also suggest which charities you want to have any remaining assets in your fund at your passing. Columbia University is grateful for gifts that come from donor-advised funds.  

If you are considering establishing a donor-advised fund we can suggest several fund sponsors for your review. You should also consult your professional advisor for their guidance.

Columbia Donor-Advised Funds

How It Works:

• You make a tax-deductible gift of $1 million or more to Columbia to establish a donor-advised fund now and later advise on how you would like the University to use the gift. 
• While you are considering what your donor-advised fund will support, the gift is then invested with other managed assets in the University’s endowment—which is managed by the Columbia Investment Management Company. As the fund harnesses the power of Columbia’s professionally managed endowment and grows over time, the donor gives recommendations for the distribution of both the original gift and the fund’s income and investment growth.
• Generally, half of these distributions must remain at Columbia; other eligible charities may receive up to 50%. Many donors who are either considering or currently have a private foundation like the fact that donor-advised funds can function very similarly to a foundation without all of the complicated administration. 

Benefits:

• Professional Investment Management: all donor-advised funds are invested in Columbia’s endowment. 
• Tax Advantages: you receive an immediate tax deduction when you make a donor-advised fund gift. 
• Flexible: at least 50% goes to Columbia, and the rest may be distributed to other eligible nonprofit organizations. 
• Cost Effective: Columbia does not charge any fees for the fund administration. 
• Time-Saver: unlike a private foundation that requires time to administer, Columbia administers all matters that relate to a donor-advised fund, including investments, distributions, and reporting. 
• Privacy: when a foundation is created, its tax forms are made public—exposing details of the foundation’s operations and even some personal information. In comparison, a donor-advised fund offers the donor more privacy because no information is available when the fund is established.

Minimum gift level: $1 million; $250,000 for additional gifts