Frequently Asked Questions (FAQ)
WHAT IS A DONOR‐ADVISED FUND (DAF)?
A donor‐advised fund (DAF) provides you with a centralized charitable account for your philanthropy. It allows you to make gifts to registered charities of your choice over time while receiving an immediate tax deduction up-front. It’s easy to use; the first step is to make an irrevocable gift —usually cash, securities, or mutual funds into your account at the JCF. Once this is complete, you receive an immediate donation tax receipt and then have the ability to advise the JCF on the charities and causes you want to support.
HOW DOES A DONOR ADVISED FUND WORK?
It’s like having a bank account your philanthropy. You make a contribution of cash, securities or other assets into your fund, which then establishes an account in your family’s name. You get a tax receipt for the donation made, and now have the ability to send any or all of your funds to registered Canadian charities. The JCF offers a variety of investment options depending on your goals. Any investment income earned in your account is tax free and is deposited back into your fund so you have more dollars to give to the causes you care about.
I’VE SET UP MY FUND, HOW DO I RECOMMEND A GRANT?
Giving through your DAF is easy. You may simply contact our grants officer at The Jewish Community Foundation of Montreal to recommend a grant to any Canadian registered charity of your choice. Grants can be made via email (link to [email protected]) or via our online portal DonorCentral
WHY CHOOSE TO HAVE A DONOR‐ADVISED FUND?
Donor Advised Funds offer you a way to plan, manage and potentially grow your charitable giving. Here are a few reasons why you should choose to open a DAF
Simplicity – The JCF handles all record‐keeping, disbursements, and tax receipts.
Flexibility– Timing of your tax deduction can be separate from your charitable decision-making.
Tax‐efficiency– Contributions are immediately tax‐deductible and any investment growth in the DAF is tax‐free. It is also easy to donate long-term appreciated securities, eliminating capital gains taxes and allowing you to support multiple charities from one block of stock.
Family legacy– A DAF is a powerful way to build or continue a tradition of family philanthropy.
No start‐up costs– There is no cost to establish a donor‐advised fund.
Privacy if desired– You may choose to remain anonymous to the grant recipient.
WHAT NAMING RESTRICTIONS ARE THERE FOR NAMING MY DAF?
You can choose any name for your donor advised fund. Most donors choose a name that reflects the main purpose of the account such as “The Wise Family Educational Foundation.” Some donors select a name that memorializes a loved one, e.g., “The Jane Williams Cancer Foundation.” Another option is to name the foundation after your philanthropic goal, e.g., “The David Levy Johnson Scholarship Fund.”
HOW WILL THE ASSETS BE INVESTED IN MY DAF?
At the JCF, we believe that a donor-advised fund is an integral part of your personal financial plan. You are free to work with one of the JCF professionals to create a customized investment plan that meets your philanthropic goals. To reach one of our Philanthropic Advisors click here.
HOW CAN I INVOLVE MY CHILDREN?
You can name your children as an advisor or successor advisor to your account. They can legally assume these roles as soon as they are 18 years old.