Some Canadian
foundations may be challenging affairs to operate. Private groups, for example,
have paid staff, an established office, and constant communications with donors
and beneficiaries. Naturally, there will be certain issues that may complicate
matters of operations to the point that the foundation is forced to close down,
especially if not properly managed. What if there’s still a need to continue
what the group started, though? The foundation can do so by converting it to a
donor-assisted fund (DAF).
Activation
The first step
in setting up a DAF will be to contact a
foundation hosting service to facilitate the process, converting existing
assets into the account. A fund deed will be the key to the effort. The process
also includes listing down the potential charities to be linked to your
donations.
Strategic Direction
A DAF planned through your foundation advisor
helps in defining the long-term goals of your philanthropic work. Some DAF
providers give you the leeway to change charities at discretion. This may be
true especially when certain factors have dearly affected the beneficiary, such
as mismanagement of gifts or the collapse of the organization itself. In a
number of cases, the awarding of grants under the DAF may have some
preconditions that must be strictly met.
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