Use and Awareness of Donor Advised Funds Style Structures in Australia

When making charitable contributions, there are several options for Canadians to consider beyond a cash donation to a charity. Well known structures include foundations, endowments, and life insurance policies. Less well known, but of increasing importance is the donor-advised fund (DAF) structure known in Australia as sub-funds. This is an account within a foundation, whereby the donor makes a contribution and immediately receives a receipt for tax purposes. As a separate step, the donor advises the foundation as to how the funds should be disbursed to operating charities. There are no account-specific disbursement requirements.
While DAFs have existed in Canada since 1952, until 2004, DAFs were relatively obscure and little used. Since 2004, Canada’s largest financial services firms have all either established their own or partnered with an existing foundation such that DAFs are now part of wealth management services for high net worth clients. Typically for DAFs affiliated with financial services, the investment advisor continues to manage the assets such that the donor receives the tax benefit without the investment advisor having to sacrifice the asset management fees.
“TO BE CONT’D”

Faculty Supervisor:

Susan Phillips

Student:

Partner:

Queensland University of Technology

Discipline:

Sociology

Sector:

Public Service, Policy, and Governance; Finance and Insurance

University:

Carleton University

Program: