“Whoa – that gift just fell into our lap!”
Right? Did it though? Did it really “just fall into your lap” or did you make sure your organization was set up for success?
Or maybe it did just fall into your lap, and it will be the only Donor Advised Fund (DAF) coming your way if you don’t start making a plan and executing that plan!
Too often, DAF gifts are treated like surprises or happy accidents. In reality, they are becoming a major and growing part of charitable giving in Canada.
The Reality of DAF Giving in Canada
At the end of 2024, data from the Canada Revenue Agency showed that approximately $16.6 BILLION was held in donor advised funds across Canada.
That’s a staggering number.
Even more encouraging? The payout rate is about 12%, significantly higher than the 5% minimum disbursement requirement.
Put another way:
About $1 in every $10 donated to charity in Canada now flows through a DAF.
And that percentage continues to grow each year.
For nonprofits, this means one thing: DAFs can no longer be treated as occasional windfalls. They need to be part of your fundraising strategy.
“But We Can’t Apply for DAFs…”
It seems daunting, especially when there is no registry or way to find or apply for DAF’s, which can make them feel mysterious or inaccessible.
But here’s the reality: those funds are held by people all around us – existing donors, community members, board members, and supporters who already believe in charitable giving.
The key is making sure that when they’re ready to recommend a grant from their DAF, your organization is easy to support.
A Simple DAF Strategy (That Many Organizations Miss)
The good news? Getting started with DAFs doesn’t require a complicated strategy.
In fact, it comes down to a few simple steps – though many organizations skip them.
1. Tell donors you accept DAF gifts
Have you mentioned DAFs in your newsletters or donor communications? Many donors simply don’t know whether an organization accepts them.
2. Make your information easy to find
Your charitable registration number and mailing address should be clearly visible on your website so donors can easily recommend a grant.
3. Remind donors about impact
Donors can recommend grants from their DAF at any time of year, not just at tax time or year-end. Regularly reminding your community about the impact of their gifts keeps your organization top of mind.
4. Provide a point of contact
Some donors may have questions about recommending a grant. Make sure there’s a clear contact person who can help.
That’s it.
That’s your starting strategy.
Don’t Forget Stewardship and Tracking
Of course, DAF gifts still require the same thoughtful stewardship you provide to all your donors.
You do have a stewardship plan in place… right?
And one more thing: proper tracking matters.
When recording a DAF gift in your CRM, don’t list the sponsoring foundation as the donor. Instead, record the account holder who recommended the grant.
For example, Charitable Gift Funds Canada Foundation currently holds the largest share of DAF assets in Canada – approximately $2.43 billion.
But that foundation isn’t your donor.
The individual behind the DAF account is.
Tracking it correctly helps you build relationships, steward donors properly, and grow future giving.
Feeling Overwhelmed?
If the thought of DAF strategy, donor stewardship, or fundraising in general is keeping you up at night, you’re not alone.
The good news? You don’t have to do it all yourself.
At Demarca Consulting, we specialize in fractional fundraising – helping nonprofits build sustainable fundraising strategies without needing a full-time development team.
This is exactly the kind of work we love.
If you’d like to talk about how your organization can strengthen its fundraising strategy, let’s connect.
🌐 https://demarcaconsulting.com/
📅 https://calendly.com/demarca/introduction
Deanna Carruthers & Lena MacIntosh – March 2026

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