What is a Donor-Advised Fund?
A donor-advised fund (DAF) is a charitable giving vehicle that lets you make a tax-receipted contribution today and recommend grants to qualified Canadian charities over time.
How a Canadian DAF Works
When you contribute to a donor-advised fund held by a CRA-registered public foundation such as The Altruly Foundation, your gift is irrevocable and becomes charitable capital under Canadian charity law. You receive an official donation receipt for the eligible amount at the time of contribution — giving you immediate tax relief in the year you donate, even if you recommend grants to charities over months or years.
Contribute
Transfer cash, publicly traded securities, or other eligible assets to your DAF account.
Receive Your Receipt
The foundation issues a CRA-compliant official donation receipt for the eligible amount.
Recommend Grants
Recommend grants to qualified Canadian donees when you are ready — on your own timeline.
Tax Tip: Immediate Relief, Deferred Giving
Unlike setting aside funds informally for future charity, a DAF contribution is a completed gift to a registered charity. You claim your combined federal and provincial donation tax credits in the year of contribution — while retaining the flexibility to recommend how and when grants are disbursed from your account balance.
Key Benefits for Canadian Donors
Immediate Tax Relief
Receive an official CRA donation receipt when you contribute, not when grants are eventually made.
Privacy & Anonymous Giving
Grants can be issued without disclosing your identity to recipient charities, if you prefer.
Zero Administrative Overhead
No board meetings, T3010 filings, or annual audit obligations — the sponsoring foundation handles compliance.
Seamless Growth Inside the Fund
Contributed assets can remain invested within your account, potentially growing your charitable capital before grants are recommended.
Key Takeaways
- A DAF separates when you receive tax relief (at contribution) from when charities receive grants (on your recommended schedule).
- Contributions are made to a CRA-registered public foundation — your gift is irrevocable and used exclusively for charitable purposes.
- Grant recommendations are advisory; the foundation independently approves each disbursement to ensure CRA compliance.
- DAFs are well suited for donors who want foundation-like giving without the legal complexity of establishing a private foundation.
Learn more about donating securities vs. cash or compare DAFs vs. private foundations.
Ready to open a donor-advised fund account?
Create your Altruly account in minutes, or speak with our team about structuring your giving strategy.