When it comes to charitable giving, private foundations and endowments have traditionally been the preserve of the very rich. Now there’s another vehicle that operates much the same way without the steep entry price. It’s called a Donor-Advised fund, and it’s surging in popularity south of the border. Here in Canada, Donor-Advised funds have been available for years through community foundations. But the Hospital for Sick Children is the first big institution to offer them. Angela Murphy says it’s a response to Zoomers who want to involve their entire families in giving.
AM: “We would invest the money within our endowment and every year there would be interest income earned, and that interest income is available for granting.”
LZ: “And you could direct it any number of places?”
AM: “Any registered charity across Canada, so that gives you about 161,000 choices.””
These funds have been surging in popularity in the US, where they now total about 20,000,000,000 – At Sick Kids, the minimum gift is $10,000.
AM: “If you divide that up between a family, between a brother and a sister and grandparents and parents, its an achievable, charitable gift for people.”