Blog: What You Might Not Know About Donor Advised Funds, and Why Local Matters
Today is DAF Day, a national day recognizing donor advised funds and the generosity behind them. Waterloo Region Community Foundation (WRCF) is proud to be part of this initiative, alongside charities, advisors and community foundations across Canada.
For me, it's also a good moment to clear up a few things. In my conversations about philanthropy, I find many people have heard of donor advised funds but aren't sure what's involved. Some have picked up ideas along the way that keep them from getting started. So here are a few things you might not know about having a donor advised fund with WRCF.
It's more accessible than you might think. A fund can begin granting once it reaches $5,000, and you can take time to build to that amount. We have options for everyone - our Fundholders reflect our community. They come from many different backgrounds and stages of life. We have Fundholders who are individuals, families, businesses, groups, organizations and even some charities. What they share is that they care about our region and want to make a difference in it.
Your fund doesn't have to be permanent. Many people choose a fund that supports the causes closest to their hearts year after year for the long-term. Others want to make a bigger impact over a shorter period. We can support both approaches, and we'll help you find the right fit.
You can give beyond Waterloo Region. WRCF’s focus is here, across our three cities and four townships and the roughly 1,000 charities and nonprofits that serve them. But your focus doesn’t need to be all local; your fund can support any registered charity in Canada. As part of a network of over 200 community foundations, we can call on colleagues across the country when your giving reaches further.
You choose how visible you want to be. Some Fundholders like to be recognized for their giving. Others prefer to give anonymously. Either is welcome.
Your fund can keep going when you step back. The Farwell4Hire Fund is a great local example. Its founders run an annual fundraising campaign in support of cystic fibrosis research while, behind the scenes, we process the donations and invest them for growth. Annually, we grant out a minimum of 5% from the fund. If Farwell4Hire takes a year off from their fundraising efforts, or make the decision to step back entirely, they have built up a permanent endowment so their support for cystic fibrosis research continues. That kind of peace of mind is something we plan for with many of our Fundholders and their families.
You don't need to know where to start. Some people come to us with a clear cause or plan in mind. Many don't. Our team is out in community every day, learning about the needs of local organizations. If you care about causes impacting areas such as: children, the environment, affordable housing or mental health, we can help connect you to the organizations that align most with your values, and where your impact can be maximized.
You will receive support from a community-minded partner with over 40 years experience Donor advised funds are offered by many providers. What makes a community foundation different is how we operate and our place-based focus. We reinvest administrative fees back into the community, not into our bottom line. We use these fees to fund research, convene conversations, and support local initiatives. And, the assets we manage are invested in a socially-responsible way and aligned with our mission - another positive impact of working with us. More than 450 Fundholders have turned to WRCF to assist them. Funds rooted in people who live here, supporting the community they love, and guided by people who know it well.
If you've been wondering what's possible, I'd love to talk. There's no cost and no obligation, just a conversation about what matters to you and how we can help.
