Understanding Donor-Advised Funds in Canada
At Make-A-Wish® Canada, we believe in the power of giving to transform lives. Wishes Are Medicine and every wish granted is a testament to the generosity of individuals who choose to make a difference. For those looking to amplify their charitable impact, a Donor-Advised Fund (DAF) offers a meaningful and flexible way to do so.
What Is a Donor-Advised Fund?
A Donor-Advised Fund is a charitable giving account that you open through a sponsoring organization, such as a public foundation or financial institution. You contribute assets—such as cash, publicly traded securities, or even real estate—directly into this account (not through your regular investment account). Once you make your donation, you receive an immediate tax receipt, and the funds can be invested to grow tax-free. You can then recommend grants to your chosen charities over time, giving you flexibility and control over how your philanthropic goals are achieved.
Benefits of a Donor-Advised Fund
Immediate Tax Benefits
When you contribute to a DAF, you receive a tax receipt for the full value of your donation in the year it’s made, allowing you to claim a deduction promptly.
Flexibility in Giving
DAFs give you the freedom to support your charity/charities of choice over time. You can take your time deciding where to direct your funds, ensuring your donations reflect your personal values.
Growth Potential
Funds in your DAF can be invested to grow tax-free, which means your charitable contributions can have an even greater impact over time.
Simplified Administration
The organization managing your DAF handles all the administrative tasks, such as issuing tax receipts and distributing funds to your recommended charities, saving you time and effort.
Legacy Planning
DAFs can be structured to continue beyond your lifetime, allowing you to leave a lasting legacy of generosity. You can even name successors to carry on your philanthropic vision.
A Personal Touch
Imagine the joy of knowing that your contributions are making a real difference in the lives of children facing critical illnesses. Your generosity can help grant wishes that help improve health outcomes for sick children.
If you’re curious about how a Donor-Advised Fund could work for you, or want to explore your giving options, contact us directly. Our team is here to guide you every step of the way and help you maximize the impact of your generosity.
Together, we can create life-changing moments for children across Canada, one thoughtful donation at a time.
TLDR; How Donor-Advised Funds Work
Contribute to a DAF
Donate assets to a registered DAF and receive an immediate tax receipt
Invest and Grow
Your funds can be invested to grow tax-free until you’re ready to give
Recommend Grants
Over time, you can recommend grants from your DAF to charities you care about
Make an Impact
Your generosity helps create life-changing experiences for others
