CEO Denise Castonguay explores the benefits of DAFs on The Sunday Money Show

One of Canada Gives’ ongoing priorities has been to promote the many benefits of a Donor Advised Fund (“DAF”)—or as we call it, a Foundation account—to Canadians interested in philanthropy. Leading that awareness drive has been our Founder and CEO Denise Castonguay.

In a recent episode of The Sunday Money Show on CFRB 1010 radio, Denise joined Alan Cameron of Bellwether Financial Management to explain why DAFs are one of the most powerful—but often underutilized—tools available to philanthropists today.

For advisors listening, the conversation offered more than an overview. It provided a practical roadmap for how to introduce DAFs into client conversations, position their value and ultimately help clients be more thoughtful, efficient and deliberate in their giving.

Why DAFs matter

Denise’s perspective is grounded in experience. Coming from the investment industry, she observed how widely adopted DAFs have become as a preferred charitable giving vehicle across North America. What stood out to her was the alignment: DAFs bring the discipline, structure and strategic thinking of financial services together with donors’ deeply personal philanthropic values

That combination is what makes DAFs so compelling—and so relevant for advisors.

She stressed that at their core, DAFs are a simple tool. They are charitable giving accounts held within a registered public foundation. But that simplicity is precisely what makes them powerful. Clients can contribute assets, receive an immediate tax receipt and then take time to thoughtfully decide how those funds are distributed to charities over time.

For advisors, this is the first key message: DAFs are not complicated and they don’t need to be positioned as such in client conversations.

Demystify the alternative: Private foundations

A useful way to frame the DAF conversation is by contrasting it with the traditional private foundation model.

As Denise explained, private foundations are typically established as separate legal entities—either trusts or not-for-profit corporations. They must be registered with the Canada Revenue Agency (CRA), comply with ongoing governance and reporting requirements and maintain administrative infrastructure. Historically, this structure has been reserved for ultra high net-worth families.

But with that structure comes burden:

• Governance obligations (board meetings, fiduciary oversight, audits)
• Regulatory compliance under the Income Tax Act
• The potential for increased CRA scrutiny
• Administrative complexity that often discourages the next generation from maintaining the foundation

It’s no surprise that many families hesitate to take the foundation plunge, while many successors are especially reluctant to take on these responsibilities. DAFs change that equation entirely. With entry points ranging from as low as $25,000 to $100,000, they democratize structured philanthropy. As Alan Cameron noted, they allow clients to “give back at scale” without the operational weight of a private foundation.

Or, as one early Canada Gives client put it: they “take the pain out of being generous.”

Reframing the value: Simplicity, scale and support

As the conversation underscored, a strong advisor conversation will highlight three core advantages of DAFs:

Simplicity and Efficiency—Canada Gives handles governance, compliance, grant administration, and reporting. Clients retain advisory privileges—without the burden.

Scale and Flexibility—Clients can contribute in a single high-income year and distribute funds over time. They can also adjust their giving strategy as priorities evolve.

Ongoing Support—Through our Client Services team, Canada Gives helps families identify charities, refine their philanthropic focus and align giving with their values.

This last point is particularly important for advisors: they are not introducing clients to a product, but rather to a supported philanthropic experience.

Lead with tax efficiency—But don’t stop there

Tax is often the entry point for DAF conversations, and for good reason. As discussed in the interview, charitable donations are treated consistently by the CRA regardless of size—clients receive a tax receipt for the full value of their gift. But where DAFs truly shine as a tool for tax efficiency is with donations of appreciated securities in kind.

Here’s how advisors can frame it:

• If a client sells appreciated securities and donates the cash, they trigger capital gains tax
• If they donate those securities directly to a DAF, they avoid capital gains entirely
• Our Foundation families still receive a tax receipt for the full fair market value of the securities

The result? More money goes to charity and the client minimizes their tax burden. It’s no surprise, then, that the bulk of contributions to Canada Gives Foundation accounts come in the form of appreciated securities, an approach that advisors are already well-positioned to identify and recommend.

Just as importantly, DAFs simplify execution. Rather than coordinating in-kind donations across multiple charities or other qualified donees—many of which may not be equipped to handle them—clients can make a single contribution to their DAF and distribute grants seamlessly.

One of the most valuable reframes in the interview was the idea that DAFs are not just for giving, but for planning how to give well over time. Canada’s regulatory framework requires a minimum annual disbursement (currently 5 per cent), but beyond that, clients have flexibility. They can invest their DAF assets for growth, provide steady, predictable funding to charities and build a long-term philanthropic strategy.

This creates meaningful benefits on both sides. For charities, it offers predictable, sustained funding and is often more valuable than one-time gifts. For clients, it’s the ability to stay engaged, measure impact and refine their giving

As Alan pointed out, charities often prefer consistent, multi-year commitments over large lump sums they must deploy immediately.

Make it personal: Family, legacy and learning

Perhaps the most compelling part of the conversation outlined how DAFs enable multi-generational engagement.

Families can involve children and grandchildren in grant decisions, creating opportunities to teach financial literacy, instill values around generosity and build a shared sense of purpose. Denise offered examples of families that have grown their DAFs significantly over time while distributing meaningful grants, and then successfully transitioned leadership to the next generation.

Others have used DAFs to fund innovative initiatives, such as donor-led awards programs for causes like biodiversity, with Canada Gives managing the operational side.

For advisors, this is where the conversation shifts from strategy to meaning. Encouraging clients to explore DAFs isn’t just good planning. It’s an opportunity to help them create something lasting: a legacy of generosity that extends across generations, adapts over time and makes a measurable difference in the world.

The Canada Gives Team

To explore how a DAF might help you build a legacy that reflects your charitable values, consider opening a Foundation account with Canada Gives. Our team is here to help guide your charitable giving with flexibility and foresight. To learn more, contact a member of our team.