Understanding Donor-Advised Funds in Canada
Creating a Generosity Plan
How This Works
For families making larger or recurring charitable gifts, structure becomes an integral part of philanthropy. A donor-advised fund, for example, allows a donor to make a charitable donation to a public foundation, receive a tax receipt in the year of the gift, and then recommend grants to Canadian charities over time. This creates a flexible charitable giving program without the administrative burden of a standalone private foundation!
Thanks to Abundance Canada for being a helpful resource
Since 1974, Abundance Canada has helped Canadians achieve their philanthropic goals with a customized Generosity Plan™. Discover tax saving ways to increase your support to the causes you care about during your life, through your estate and beyond. As a registered public foundation with the Canada Revenue Agency (CRA), we offer a professional and personalized gift planning service. We make charitable giving easy and effective. Consultations are free, confidential, and without obligation.
Donor-advised funds (DAFs) have become one of the fastest-growing charitable giving vehicles in Canada, offering donors a flexible, strategic, and tax-efficient way to support the causes they care about.
A DAF is essentially a charitable account administered by a public foundation—such as a community foundation, financial institution–affiliated foundation, or national charitable organization—into which a donor makes a contribution. Once the contribution is made, the donor receives an immediate charitable tax receipt, while the funds continue to grow tax-free within the account.
One of the main advantages of a donor-advised fund is flexibility. Donors can recommend grants to their preferred charities over time, allowing them to spread out their giving or respond to emerging needs as they occur.
This makes DAFs particularly attractive for individuals and families who want to create a long-term giving strategy without the administrative responsibilities of establishing a private foundation.
DAFs also allow donors to involve their children or other family members in philanthropy, helping build a tradition of giving across generations. Many sponsoring foundations offer guidance, research support, and streamlined administration, making it easier for donors to focus on their charitable goals.
In essence, donor-advised funds combine the simplicity of a charitable donation with the ongoing flexibility of a personalized philanthropic plan. They have become an essential tool for Canadians who want to make a meaningful and lasting impact in their communities.
The Concordia Foundation is pleased to welcome several gifts from Family Foundations and DAFs throughout the year.
For more information, please discover Abundance Canada’s resource centre.