Your Money, Your Legacy: How Donor Advised Funds Work

The Donor Advised Fund PlaybookIn this episode, Lawrence Greenberg continues the three-part series on charitable giving in Canada with Part Two: Donor Advised Funds. He's joined by special guest Linda Argalgi, tax accountant and philanthropy advisor at the Jewish Community Foundation (JCF).Linda walks through what a donor advised fund (DAF) is, how it compares to a private foundation, and why this strategy isn't just for the ultra-wealthy. They cover the mechanics of contributing to a DAF, how investment options work, and the key differences in administration, privacy, disbursement flexibility, and legacy planning between a DAF and a private foundation.Lawrence and Linda also discuss real-world planning scenarios — from front-loading donations during a high-income or wealth-creation year, to setting up a fund that honors a donor's wishes for generations to come.A must-listen for anyone curious about more sophisticated, flexible ways to structure their charitable giving.Happy listening!Key Topics Covered:Introduction to Linda Argalgi and her path into philanthropy (00:29)Overview of the Jewish Community Foundation (JCF) (02:52)How donors give to charities through a DAF (04:14)Investment options within a donor advised fund (05:36)Why Canadians are turning to DAFs — and debunking the "only for the ultra-wealthy" myth (07:11)DAF vs. private foundation: who owns the assets? (08:53)Administrative burden: private foundation vs. public foundation fund (10:10)Disbursement quotas and flexibility in timing your giving (11:11)Types of assets you can contribute (cash, securities, real estate, insurance, private shares) (12:55)Privacy differences between private foundations and DAFs (13:41)Legacy planning and naming a fund (14:48)The four steps of how a DAF works, from contribution to grant (17:03)Strategic timing: front-loading donations around a high-income or liquidity event (19:25)Real client example: using a DAF after a real estate sale (22:00)What happens to a DAF when the donor passes away (23:11)Debate: are donor advised funds delaying giving to charities? (25:45)Key takeaways and closing thoughts (27:47)Mentioned in this episode:Linda Argalji, tax accountant and philanthropy advisorJewish Community Foundation (JCF).Be sure to subscribe on Apple, Google, Spotify, or wherever you get your podcasts. Feel free to drop us a line at [email protected] or 514-695-0096 ext.112.Follow Tulett,Matthews & Associates on social media: LinkedIn, Facebook, and more!Follow The Empowered Investor on Facebook, LinkedIn, and Instagram.Thanks for listening!