Understanding Donor-Advised Funds in Canada
Creating a Generosity Plan
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.