Event Recap from TechSoup Connect Canada – July 29, 2025
Did you know donor-advised funds (DAFs) granted nearly $1 billion to Canadian charities in 2021 alone? Despite this explosive growth, many nonprofits still misunderstand—or completely overlook—DAFs in their fundraising strategy. That’s why we invited Mike Todd, Founder of Transform Philanthropy, to guide us through the realities, opportunities, and myths surrounding DAFs in Canada.
Whether you’re new to donor-advised funds or looking to deepen your understanding, here’s a recap of the key lessons from Mike’s engaging and highly actionable presentation.
1. What Are DAFs, Really?
At their core, donor-advised funds are a simple but powerful tool: a giving account administered by a public foundation that allows donors to receive immediate tax benefits and then recommend grants to charities over time. DAFs separate the act of giving (the donation) from the act of granting (supporting a specific charity), offering donors flexibility, efficiency, and—most importantly—more giving power.
2. DAFs Are Not the Competition—They’re the Channel
One of the biggest myths is that DAFs “compete” with charities for donor dollars. In truth, they are a vehicle that can increase donations. Mike shared that once a donor switches to a DAF, their giving often doubles. Why? Because the “pain” of parting with funds happens earlier—when they make the donation to the DAF. Sending a grant to your charity from a DAF feels more like using a gift card than a credit card.
3. The Opportunity Is Bigger Than You Think
Most charities have received a few DAF grants here and there—often with little context or donor information. But Mike emphasized that this is only the tip of the iceberg. With over $14 billion estimated in Canadian DAF accounts today, and growth rates exceeding 20% per year, the potential is massive. The time to build your strategy is now—before it becomes overwhelming.
4. Why So Many DAF Grants Seem Anonymous
One frustration many charities share is receiving DAF grants that appear anonymous. Mike clarified that while less than 5% of grants are intended to be anonymous, many arrive under the name of the donor’s fund—e.g., “The Sunny Day Fund”—with no contact details. Unless your team proactively invites donors to self-identify as DAF users, these contributions will stay invisible. Start by simply asking. Add a donor survey option “I would prefer to give via my donor-advised fund”.
5. Make Your Charity “DAF-Attractive”
Want to stand out to DAF donors? Start by:
- Adding “donor-advised fund” as a giving option on your Ways to Give page
- Acknowledging DAF gifts—even if anonymous—by sending thank-you notes via the DAF sponsor. Be sure to use the DAF name, not the name of the DAF sponsor.
- Training staff to recognize and support DAF-based giving conversations
Mike emphasized that donors are scanning your site and communications for cues—if they don’t see “DAF,” they may assume you don’t accept them.
6. Why DAFs Are Resilient—Even in a Recession
Another overlooked benefit? DAF donors are often recession-resistant. Because funds are set aside in advance, they’re insulated from short-term financial pressures. That means these donors are more likely to keep giving—even when the economy slows down. And since CRA prohibits donors from reclaiming those funds, the money is already earmarked for charitable impact.
7. Connect with Mike Todd at Transform Philanthropy
In an era where donor-advised funds (DAFs) are the fastest-growing giving vehicle in Canada, charities that adapt to this shift stand to gain significantly—increased revenue, loyal supporters, and streamlined operations. Yet many organizations remain unprepared, leaving DAF grants underrecognized and underutilized. My work with charities transforms this challenge into opportunity through a structured 3-phase approach:
Phase 1: Build a Rock-Solid Foundation (Reactive)
Phase 2: Become Irresistibly DAF-Attractive (Proactive)
Phase 3: Educate to Amplify Giving (Strategic)
The journey begins with a presentation for your staff and board, covering:
– What DAFs are (and aren’t)
– The tangible opportunity they represent
– Your charity’s tailored path forward
From there, we’ll build your DAF strategy, until DAFs become your most reliable source of growth.
Please be in touch if I can help.
Mike
mike@transformphilanthropy.ca
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