As leaves begin to turn, a new season is upon us – no, not fall, but what’s known as “the giving season.” In 2026, that season now includes DAF Day Canada on October 8, followed by National Philanthropy Day on November 15, and Giving Tuesday on December 1. Whether there’s a specific cause close to your heart or you want to share your wealth with those who need it, Canadian charities continue to need thoughtful, timely support.
According to The Giving Report 2026 from Canada Helps, Canada’s charitable sector continues to face significant pressures, including rising demand for services, staff burnout, and challenges recruiting volunteers and securing funding. More than two-thirds of charities report increased demand for their services, while many organizations continue to struggle with staffing shortages and financial uncertainty. These pressures have intensified since the pandemic as affordability and housing challenges increase demand for many charitable programs.
One way to make giving more manageable, especially for higher net-worth individuals, is to set up and then give through a DAF. Unlike a foundation, which can take six or more months to establish, needs at least $5,000 in set-up costs, and requires the founding donors or paid staff to manage the administration and governance requirements, a DAF can be up and running in a few days. This enables founding donors to focus their time on making strategic granting recommendations. At BMO Private Wealth clients only need $25,000 to open a DAF and a charitable receipt is issued for the amount transferred into the fund.
“We have 86,000 charities registered in Canada, plus there are another 4,000 qualified donees, like amateur athletic organizations and international universities,” says Karen Sparks, National Director of Philanthropic Advisory Services with BMO Private Wealth. “A donor-advised fund gives you the immediate tax receipt, the time to plan your gifts for greatest impact and the ability to involve the next generation in philanthropy, if appropriate.”
Here are a few tips for anyone looking to set up a DAF as we head into the giving season.
1. Know the deadlines
Given the time it takes to establish a foundation, it’s too late to create one for the current tax year. A DAF, however, can often be established much faster. If you are hoping to receive a tax receipt for the current year, speak with your BMO Private Wealth professional as early as possible about account opening, funding, and end-of-year securities-transfer deadlines for BMO DAFs.
2. Tax considerations
If you own a business or have an investment holding company, you might also give to charity from your corporation. Donating publicly- traded appreciated securities can be particularly compelling because the capital gain may be exempt from tax when the gift is made to a registered charity or other qualified donee. However, personal, and corporate donations are treated differently. “Personal donations are a non-refundable tax credit,” says Sparks. “They don’t reduce your income, but they do reduce the tax dollars paid.” In contrast, a corporate donation generally reduces the company’s taxable income and is most beneficial when the corporation is paying tax at the highest applicable rate. Donors should always consult their tax and legal advisors based on their own circumstances.
3. Understanding investing rules
Money in a DAF is invested according to guidelines designed to support long-term charitable giving while managing risk. For BMO’s DAF Program, Charitable Gift Funds Canada Foundation oversees the assets and follows the prudent investor requirements of Ontario’s Trustee Act. Your BMO Private Wealth professional can help build a diversified portfolio within the program’s limits: up to 80% in equities and up to 25% in alternative investments. To reduce concentration risk, a single stock may represent no more than 10% of the total portfolio or 15% of its equity holdings. Equity investments are generally limited to mid- and large-sized companies, and most fixed -income investments must be investment-grade securities.
4. Life insurance
One growing trend in charitable giving is to donate to a DAF with a life insurance policy. There are two main options here: you can make the DAF the beneficiary of the policy or make it the owner and the beneficiary. In both cases, the DAF would get the proceeds of the policy after you pass away, while your estate would get the tax receipt for the donation (in the former case only). However, in the latter case, you’ll get a tax credit for every premium you pay and the premiums can also be funded with appreciated securities. Further, if you gift an already fully paid permanent life insurance policy, you will get a tax receipt for the fair market value of the policy, as determined by an actuarial calculation. “There are a lot of interesting things going on with the growth of life insurance as a way to magnify your charitable giving,” says Karen Sparks.
5. Name your successors
Naming successors helps ensure your DAF continues to reflect your values long after your lifetime. By designating children, family members, or other trusted individuals, you can create continuity in your giving, engage the next generation, and turn your charitable intentions into an enduring legacy. “The good news is that if you haven’t yet named a successor and want to, you can do so at a later date through a letter of authorization,” says Danielle Robinson, National Director of Philanthropic Advisory Services, BMO Private Wealth. “Alternatively, if you don’t want to name anyone as a successor, you can also communicate your legacy intentions for your DAF by listing the types of charities you would prefer to support for as long as your DAF continues to exist.”
Ultimately, setting up a DAF is a practical way to make charitable giving more intentional, flexible, and enduring. “We like to call it the give it, grow it, grant it model,” notes Robinson. “If you’re already making large charitable donations of cash or securities, DAF Day and the year-end giving season can be timely prompts to consider whether a DAF could help you organize your philanthropy and build a lasting legacy.”
6. Added flexibility in estate planning
Consider establishing a donor- advised fund to receive a gift from your estate. This provides the tax benefit of the gift, and eases administration for the executor who has to complete one gift as opposed to multiple donations. “The charities that benefit are decided outside of the estate, giving additional flexibility to plan your philanthropic legacy,” according to Sparks.
For more information on how to make philanthropy part of your wealth plan, speak with your BMO Private Wealth professional.