---
title: "Demystifying the DAF: What Every Charity Should Know"
description: Understanding Donor Advised Funds and how your charity can take advantage of them.
image: https://blog.techsoup.org/hubfs/by-the-cup/2023/blog-2.0-23.10.16-micro-donations-repost-inline.png
---

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# Demystifying the DAF: What Every Charity Should Know

![TechSoup logo](https://blog.techsoup.org/hubfs/TechSoup_August2017/images/ts-chicklet.png)

Tanis Patenaude, GiveWise

 November 18, 2025

 

### When most Canadian charities hear the term “donor-advised fund,” they assume it’s something only large institutions or ultra-wealthy donors use.

But that assumption could mean missing out on significant, values-aligned giving.

Donor-advised funds (DAFs) — or *Giving Funds*, as we call them at [GiveWise](https://www.givewise.ca/) — are one of the fastest-growing ways Canadians are choosing to give. With nearly $10.5 billion now held in DAFs across Canada*, this is longer a niche strategy – it’s a major shift in how generosity happens. Yet many small and mid-sized charities still feel unsure about what they are, how they work, or how to engage donors who use them.

Here’s the short version: A DAF is like a charitable bank account. A donor gives to their Giving Fund, receives a tax receipt right away, and then donates to the charities they care about over time. It’s a flexible, intentional way to give — and more of your supporters are using them than you think.

At GiveWise, we’re Canada’s most flexible and forward-thinking *digital-first* donor-advised fund platform. We’re built to make DAFs simple, transparent, and accessible for both donors and charities. **We’re the only DAF platform designed to service charities as well as we serve donors. **

That means:

- **You get a *live view into donor data*** – no more waiting or wondering who gave
- **You can *thank donors directly*** and build stronger relationships
- **You can *receive complex gifts*** (like donated shares or contributions from DAFs) without adding tech or admin burden

Still, we often hear common misconceptions:

- “Our donors aren’t wealthy enough.”
- “Those gifts are always anonymous.”
- “It’s another platform to manage.”
- “If someone uses a DAF, we’ll lose them to other charities.”

The truth? DAFs don’t fragment generosity — they focus it. And with the right support, they don’t create more work: They unlock more potential.

Understanding how DAFs work is the first step. Knowing how to partner with donors who use them is what sets thriving charities apart.

**Source: [Twin Rivers – Impact Investing and Donor-Advised Funds in Canada (2024) ](https://twinrivercapital.com/wp-content/uploads/2025/05/TwinRiver-DAF-Impact-Investing-2025.pdf)*

---

**Want to hear more from our friends at GiveWise? **[Check out the recording of our live webinar](https://youtu.be/o3p5OFbR2l0), *Other Ways to Give: How Digital DAFs and Non-Cash Gifts Can Boost Your Giving Season*. Featuring Jessica Rayne, Generosity Growth & Partnerships Lead at GiveWise, and facilitated by Eli van der Giessen of TechSoup Connects Canada.

###### *About GiveWise*

*GiveWise is a Canadian foundation that operates a digital-first donor-advised fund platform designed to simplify generosity for both donors and charities. We bring nonprofit-to-nonprofit expertise to everything we do — helping organizations receive complex gifts, deepen donor relationships, and unlock more strategic giving. *

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