Demystifying the DAF: What Every Charity Should Know

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 — 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)

Want to hear more from our friends at GiveWise? Check out the recording of our live webinar, 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.