What is a Donor Advised Fund (DAF)?

What is a Donor Advised Fund (DAF)?

A Donor Advised Fund (DAF) enables 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 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.

Here is how a DAF works.

  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.

Looking for more info about DAF? Or interested in setting one up? Check out our DAF page on our website.

Disclaimer: This article provides information only and is not intended to confer financial advice or opinion. If you have any further questions please consult a Financial Planner. Please note as well that many of the statements herein are general principles which may vary on a case by case basis.