Donor advised funds make charitable giving easier, offering flexibility, tax benefits, and the integration of philanthropy into overall wealth and estate plans.
For Canadians seeking an efficient way to create lasting impact, donor advised funds (DAFs) offer a flexible solution. A DAF is a charitable giving account where donors contribute funds, receive immediate tax benefits, and then recommend donations to charities at their own pace. Combining many of the benefits of a private foundation with lower costs and simpler setup, DAFs also allow either recognition or anonymity with charities and handle CRA reporting through the managing foundation.
Benefaction Foundation specializes in managing DAFs, helping individuals and corporations to seamlessly incorporate charitable giving into their wealth management plans.
Creating a culture of giving
Joady, a donor and Vice-President at Assante Wealth Management, highlights the simplicity and strategic benefits of DAFs. “They allow me to donate when it makes sense financially, even before choosing a specific charity,” she says. Assante introduced DAFs five years ago to facilitate planned giving conversations. “They create a multigenerational family experience and align perfectly with our firm’s values,” says Joady.
[DAFs] allow me to donate when it makes sense
financially, even before choosing a specific charity.
The idea of enhancing family philanthropy certainly rings true for Keith, another donor with CIBC Wood Gundy. “On their birthdays, my children and grandchildren choose charities to support, creating a culture of giving,” he says. Keith also praises the administrative ease of DAFs for larger, strategic donations. “Charities often see DAFs as a threat, but in 2021 alone, they granted nearly $1 billion to Canadian charities,” he notes.
To learn more about how individuals, corporations, and financial advisors can make a positive impact through planned giving with Benefaction Foundation’s DAFs, visit benefaction.ca.
