What is a donor-advised fund and how does it compare to a direct charitable bequest in an Ontario will?

A donor-advised fund is an account held at a public foundation or other sponsoring charitable organization, into which you, or your estate, contribute money or other property, generating a donation receipt at the time of the contribution. From there, instead of naming specific charities in your will, you or people you designate can recommend grants out of that fund to various charities over time, giving flexibility about exactly which organizations benefit and when.

A direct charitable bequest, by contrast, names one or more specific charities to receive a defined gift outright at your death, with no ongoing account or grant-recommending process afterward. It's simpler and more final, but it locks in your choice of charity at the time the will takes effect, or whenever it's last updated, rather than allowing decisions to evolve over time.

Donor-advised funds can be useful if you want ongoing family involvement in charitable decisions after your death, or if you're not sure yet exactly which specific charities should benefit long-term. Direct bequests are simpler where you already know exactly who should receive the gift. Discuss both options with a lawyer and, if relevant, the foundation offering the fund, to see which better matches how involved you want your estate or family to be in ongoing giving decisions.