Why donor-advised funds are surging in popularity Brenda Bouw Published April 29, 2021 fzant/iStockPhoto / Getty Images More charitably-minded Canadians are turning to donor-advised funds as a simplified, tax-efficient way to give, supported by financial advisors looking to help clients distribute their wealth to good causes. Donor-advised funds have been around for decades in Canada, but data show the charitable-giving vehicles have gained significant traction in recent years. A recent report from Toronto-based research firm Investor Economics says the value of donor-advised funds in Canada grew at a compound annual rate of 14.3 per cent between 2016 and 2018, to $5.7-billion from $4.4-billion. There was a 35-per-cent increase in the number of donor-advised funds set up at various foundations over the two-year period, the report shows, and a steady rise in donations to new and existing funds.