The Danish Federation was established at Sunset Villa in Puslinch, Ontario, on June 7, 1981, with the purpose of bringing together all existing Danish organizations in Canada, to create a permanent network of cooperation. The Federation is a Club of Clubs, and it is therefore the national umbrella organization of the Danes in Canada.

The Federation is made up of member organizations from across Canada - in New Brunswick, Quebec, Ontario, Manitoba, Saskatchewan, Alberta, British Columbia and the Yukon. Member organizations include congregations, churches, senior citizen homes, veterans of the Royal Danish Guards' Associations, business men's associations, fraternities, historical societies, museums and social clubs.

Some of the reasons for establishing the Federation were to strengthen personal and institutional contacts, to exchange ideas and experiences, and to cooperate on joint projects. Indeed, a Federation would be able to coordinate joint projects, and also to take on major projects which could not be handled by one organization alone, or which might better be carried out in cooperation, such as holding Heritage Seminars or backing the building of a National Museum.