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Donor Advised Funds

Support life-changing care

A donor-advised fund (DAF) is a type of giving program administered by a third party, such as a community foundation or a financial services company, that allows you to combine tax benefits with the flexibility to support your favorite charities. It is created for the purpose of managing charitable donations on behalf of an organization, family, or individual. An increasingly popular charitable vehicle, DAFs are an excellent way to simplify your charitable giving and facilitate your strategic philanthropic goals. DAFs allow donors to give cash, stock, and other assets where the donor receives an immediate tax deduction when the contribution is made but can recommend specific amounts to the charities of their choice, such as for your north state (Mercy Medical Center Redding, Mercy Medical Center Mt. Shasta or St Elizabeth Community Hospital, Red Bluff) hospital's benefit a later time.

How does it work?

When you open a donor advised fund (DAF), you are creating a separate entity to use the assets under management to support qualified charities. 

You can fund it by irrevocably contributing assets such as cash, appreciated stock, insurance proceeds, or various other forms of capital. Your DAF is a separate entity, so you can take an immediate tax deduction for the gift amount.

As an advisor to the fund, you can choose to manage the investments personally or have an investment advisor manage the portfolio.

The two primary avenues of supporting your north state hospital with your donor advised fund are through a beneficiary designation and recommending grants.

Beneficiary

Recommending a gift to the Mercy Foundation North through your donor advised fund (DAF) is simple. A DAF is a separately managed fund that is maintained and operated by a sponsoring organization, such as Fidelity Charitable and Schwab Charitable. Once the donor establishes a DAF, that individual retains advisory privileges with respect to investment allocations and distributions to various charities.

In addition to offering ease of administration, a donor-advised fund offers the opportunity to create a low-cost, flexible way to diversify your philanthropy without the expense of creating a private foundation.

Grants

While you or your assigned successor(s) are advising the fund, you can recommend grants from the fund to support your north state facility (Mercy Medical Center Redding, Mercy Medical Center Mt. Shasta or St Elizabeth Community Hospital, Red Bluff) or other charitable organizations.

What are the Benefits?

  • Receive an immediate deduction on your taxes.
  • Assets in the fund grow tax free.
  • Easier, and less expensive than establishing a private foundation.
  • Allows you to get started with a relatively small amount of money, as low as a $500 gift.
  • Tax smart for those using a "lumping" strategy under the new tax laws.

With a low barrier to entry and multiple ways to create charitable impact, DAFs are a great strategy for charitable giving. If you have questions about setting one up, or want more information please contact Mercy Foundation North.


It is important to note that a DAF distribution is subject to IRS charitable contribution restrictions. A recommendation for a distribution from a DAF will likely not be approved by the sponsoring organization if any portion of the gift will be used to provide more than incidental benefits. For instance, DAF gifts cannot be used to pay for tickets to a fundraising event, gala dinner, or golf tournament.

You can donate directly to the Mercy Foundation North by providing the following information to the sponsoring organization of your fund.

  • Legal Name: Mercy Foundation North
  • Federal Tax ID: please call the Foundation office at 530-247-3424 for assistance.
  • Specify the desired amount of your gift
  • Name of the fund where your gift should be directed or the description of the purpose.
  • Mailing Address:
     
    Mercy Foundation North
    2625 Edith Avenue, Suite E
    Redding, CA  96001

Each organization will have the appropriate forms to complete these donations, which you can usually access through an online portal or by working with your fund adviser. Your sponsoring organization can then complete the transaction to distribute funds to Mercy Foundation North.

Thank you for your interest in making a gift to support patient care and programs at one of our North State hospitals. As always, 100% of your donation will be applied towards the fund or department you select.

For questions or assistance with making your gift, please contact a member of the Mercy Foundation North at 530-247-3424 or MercyFoundationNorthContactUs@DignityHealth.org.