DAF Day coming to Canada
Why It Matters
DAFs continue to grow in size and influence in the philanthropic sector. Non-profits should learn about the growing movement and how to benefit from this popular way of giving.
An innovative and efficient way to support non-profits is getting its own spotlight in Canada with the launch of Donor-Advised Fund Day, or DAF Day.
DAF Day was first launched in the U.S. last year.
They are the fastest-growing way to give, according to Mike Todd, who’s leading the movement in Canada.
“More and more donors who are still giving are switching to donor advice funds,” said Todd, the founder and principal consultant of Transform Philanthropy.
“You’ve got to go where the money is. The charities need to go where the donors are going.”
Last year, the American movement saw almost as much giving on DAF Day as on Giving Tuesday in its first year.
The first Canadian DAF was created in 1952 by the Vancouver Foundation, but decades later, Todd said there is still a lack of education about DAFs and their benefits.
“What would you rather use to pay for your purchase? A credit card or a giftcard? A giftcard,” said Todd.
“The Donor-Advised Fund is like a giftcard for a charity because I bought the card last year and I paid for it and the money left my wallet. Now it’s just sitting there in this giftcard to be used.”
A DAF is a charitable giving account that allows donors to make tax-deductible contributions and invest the funds for growth.
Bringing DAF Day to Canada is something Jeff Golby has been working on closely with Todd.
“I’m really approaching this in a like, crawl, walk, run, fly kind of way,” said Golby, CEO and co-founder of WellFunded.
Spreading awareness about DAFs is the first step, he said.
“I want to see advisors feel more comfortable talking about their Donor-Advised Fund. I want to see charities taking some baby steps towards being DAF ready,” Said Golby. “ And I want to see DAF admins connecting to the other DAFs in the sector so we can get some consistent messaging.”
DAFs often eliminate much of the administrative work that often comes with large donations, said Golby.
“Because it takes the admin off the table, I find (donors) are more generous more often than not because they’ve already parted with their money,” he said.
Setting a deadline for giving creates a sense of urgency, encouraging more people to take the first step in opening a Donor-Advised Fund, he said.
DAF Day is Oct. 9 this year.
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