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.
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.
Why set up a DAF?
- Establish a flexible vehicle for annual charitable giving
- Benefit from a more tax and cost efficient way to give
- Obtain a charitable income tax deduction in the year of the gift
- Give to multiple recipients through one organization
- Give anonymously (if you so desire)
How does it work?
- 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.
- 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.
- You make annual suggestions on gifts to be made from the DAF. You can suggest multiple churches/ministries or just one.