Why establish a donor advised fund instead of a private foundation?
Starting up a private foundation requires the donor to create a new organization, establish a board of trustees, obtain registered charitable status from Canada Revenue Agency and keep reporting regularly. A fund at a Community Foundation is far easier and faster to establish and entails no start-up costs. Maintaining a donor advised fund at the Community Foundation is usually more cost effective than running a private foundation, and the problem of intergenerational succession is resolved. In addition, Community Foundation donors are free of the responsibility for monitoring grants made and for fulfilling national and provincial reporting requirements. The Community Foundation staff handles all those administrative tasks.
