What is a Donor Advised Fund (DAF)?

A Donor Advised Fund (DAF) allows donors to make charitable contributions, receive immediate tax benefits and then recommend the distribution of funds over time to any local church or ministry with charitable status (organizations consistent with the LMC Statement of Faith).

A DAF is like having a savings account just for giving purposes!

A donor can add to the fund in a number of ways including cash, investments or registered securities as often as they would like. The funds in the account can be invested and grow over time tax free. * Please note that once assets are donated into the fund they cannot be withdrawn for personal use but are restricted for charitable giving.

Why set up a DAF?

  1. Establish a flexible vehicle for charitable giving
  2. Benefit from a more tax and cost efficient way to give
  3. Receive a charitable income tax deduction (in the year of) for each contribution to the DAF
  4. Give to multiple recipients through one organization
  5. Give anonymously (if you so desire)

How does it work?

  1. You make an initial, irrevocable gift to Legacy Ministries Canada of $2500 or more in either cash or stock to fund the Donor Advised Fund.
  2. We place those funds into an investment account with either a low or medium risk tolerance that fits with your wishes. The assets in the DAF grow tax-free.
  3. You make annual suggestions on gifts to be made from the DAF. You can suggest multiple churches/ministries or just one.

For more information please check out our forms for both Individual DAF and Organization DAF or contact us.