When disaster strikes, the need for swift, coordinated action is critical. Whether it’s a natural disaster, a humanitarian crisis, or an environmental emergency, timely donations can make all the difference. Using Donor-Advised Funds (DAFs) for global crisis relief offers a unique advantage for philanthropists looking to respond quickly. With their flexibility and ease of use, DAFs enable donors to act immediately while ensuring their contributions are impactful and strategically allocated.
A Case Study: Los Angeles Wildfires
The recent wildfires in Los Angeles provide a powerful example. As flames devastated neighbourhoods and displaced thousands, organizations on the ground worked tirelessly to provide food, shelter, and medical aid to affected communities. DAF holders were able to support these efforts almost instantly by recommending grants to local relief organizations. For Canadian donors, however, supporting U.S.-based efforts comes with unique considerations.
How Canadian DAF Holders Can Support Global Crises
Canadian DAFs can contribute to relief efforts like the Los Angeles wildfires, but it’s important to follow certain guidelines. The Canada Revenue Agency (CRA) requires grants to be made to qualified donees, such as CRA-approved U.S. charities or Canadian organizations supporting international relief efforts. Some DAF sponsors facilitate cross-border giving by working with vetted U.S.-based charities or by partnering with Canadian intermediaries who can direct funds to relief efforts abroad. This ensures compliance with Canadian tax laws while allowing donors to make a meaningful global impact. One example is Myriad Canada.
Pooling Resources for Greater Impact
One key benefit of DAFs in times of crisis is the ability to pool resources. By consolidating donations from multiple donors, funds can be directed where they’re needed most, amplifying their impact. For example, during the Los Angeles wildfires, Canadian DAF holders were able to support both immediate response teams and longer-term recovery efforts through partnerships with Canadian organizations that make grants to certain US based charities.
Reaching Beyond Borders
Another advantage of DAFs for global crisis relief is their ability to support global crises beyond national borders. Whether it’s an earthquake in Turkey, floods in Pakistan, or fires in the U.S., some Canadian DAFs simplify international giving by connecting donors to vetted organizations. Although there may be some additional steps involved in cross-border giving, working with experienced DAF sponsors ensures compliance and maximizes impact.
Harnessing the Power of DAFs in Crises
For donors looking to make a difference during a crisis, DAFs provide a powerful solution. They combine the agility needed for immediate action with the accountability and strategic focus required for long-term impact. If you’re a Canadian DAF holder, work with your sponsor to explore how your fund can be part of the solution in global emergencies like the Los Angeles wildfires. Together, we can ensure that help reaches those who need it most, whether in your community or across the globe.
