A Flexible Structure for Long‑Term Charitable Giving
A donor-advised fund, or DAF, is a charitable giving account that allows a donor to make an irrevocable charitable contribution, receive a charitable tax receipt and recommend grants to eligible charities over time.
Assets in a DAF may be invested for future charitable giving, allowing donors to take a longer-term and more strategic approach to philanthropy.
DSI supports organizations that offer donor-advised fund programs by providing the technology, administration and operational infrastructure behind them.
Five Steps, One Lasting Structure
Contribute
A donor contributes cash, publicly traded securities or other eligible assets to a donor-advised fund.
Receive a Charitable Tax Receipt
The donor receives a charitable tax receipt for the eligible contribution.
Invest for Future Giving
Charitable assets may be invested according to the program’s investment framework.
Recommend Grants
The donor recommends grants to eligible charitable organizations over time.
Distribute Grants
Grant recommendations are reviewed and, once approved, charitable funds are distributed through the program’s established processes.
A Growing Force in Canadian Giving
Donor-advised funds are an increasingly important part of the charitable giving landscape. They give donors a simple and flexible way to separate the decision to give from the decision of where and when to grant.
For financial institutions, foundations and philanthropic organizations, DAFs create an opportunity to deepen donor relationships, support more strategic giving and build long-term charitable programs.
Simple
Centralize charitable giving through a single account and streamlined process.
Flexible
Support contributions of cash, publicly traded securities and other eligible assets.
Strategic
Allow donors to plan their giving and support multiple charitable organizations over time.
Long-Term
Create a structure for sustained, multi-year and intergenerational philanthropy.
DAF vs. Private Foundation
Donor-Advised Fund
- Lower administrative requirements
- Faster to establish
- Operational infrastructure can be outsourced
- Streamlined administration
- Scalable giving structure
Private Foundation
- Significant administrative obligations
- More complex setup
- Requires dedicated governance and administration
- Direct responsibility for compliance and operations
- Higher ongoing operating costs
Common Questions About DAFs
What assets can be contributed to a DAF?
Donor-advised funds can generally accept cash and publicly traded securities. Depending on the charitable program and its policies, other eligible assets such as private shares, insurance policies and real estate may also be considered.
The types of assets accepted are determined by the charitable organization operating the DAF program and its gift acceptance policies.
How are grant recommendations made?
Donors can recommend grants from their donor-advised fund to eligible charitable organizations. Grant recommendations are submitted through the program’s established process and reviewed before funds are distributed.
Can charitable assets remain invested?
Yes. Charitable assets held in a donor-advised fund may be invested for future charitable giving, subject to the investment framework and policies of the DAF program.
Which organizations can receive grants?
Grants are generally made to qualified donees recognized under Canada’s Income Tax Act, including Canadian registered charities and certain other eligible organizations.
How does DAF administration work?
DAF administration covers the day-to-day work required to operate a donor-advised fund program, including account and fund setup, donation processing, recordkeeping, tax receipting support, grant administration, charity validation, reporting and donor service.
What role does DSI play?
DSI provides the technology, administration and operational expertise behind donor-advised fund programs, helping organizations launch, operate and scale sophisticated charitable giving programs without having to build the full operating infrastructure themselves.