PLANNED GIVING FAQS
A Planned Gift to Cornerstone gives you the opportunity to make a lasting impact on our mission to keep our community hunger free, to provide clothing and shelter to families struggling to survive.
Frequently Asked Questions (FAQ’s)
1. Can I donate directly on Cornerstone-Cares.org web site with a credit card?
a. Yes. We receive ongoing and one-time contributions through cornerstone-cares.org Network for Good. Monthly reoccurring donations are made by our individual donors. We mail tax receipts after each donation is made. Click here for on-line donation page.
2. How to double your donation? Can I donate through my paycheck at work?
a. Yes. Many large employers such as Voya, Travelers, Aetna, and Eversource Energy have workplace matching programs you can give to Cornerstone Foundation through payroll deductions. Contact your HR contact to ask if your employer will match a donation to Cornerstone Foundation.
3. I am over 70-1/2 years old. Can I give a portion of my Traditional IRA or 401k RMD (Required minimum
distribution) directly to Cornerstone Foundation tax-free?
a. Yes. The Pension Protection Act of 2006 first allowed taxpayers age 70½ or older to make tax-free charitable donations directly from their IRAs. Technically, these taxpayers are allowed to exclude from gross income otherwise taxable distributions from their IRA ("qualified charitable distributions," or QCDs), up to $100,000, that are paid directly to a qualified charity.
4. Am I able to gift highly appreciated stock directly to Cornerstone Foundation?
a. Yes. Cornerstone Foundation has a Brokerage account to accept donated securities transferred electronically safely.
b. The value of the donation is based on the market value on the date of receipt of the securities.
c. Contact Angela Atwater, Angela.Atwater@Cornerstone-Cares.org President of the Board of Directors, for assistance
5. Why should I give stock donations to Cornerstone Foundation?
a. You can avoid capital gains tax by donating highly appreciated stock.
b. Donating stock is a tax strategy for avoiding up to 20% capital gains tax versus if you sell the stock and donated cash proceeds.
c. You can give your portfolio a health check by reviewing unwanted positions
d. You can donate stocks without headaches when you don’t know your cost basis.
6. Can I name Cornerstone Foundation as a Beneficiary on my Investment Accounts or IRAs?
a. Yes. You can name Cornerstone Foundation to received 1% up to 100% of your Investment Accounts, IRAs, or Annuities by updating your beneficiary designations directly with your Investment Firm and additionally by-pass the lengthy Probate Court settlement process and fees.
7. Can I donate to Cornerstone Foundation through a Donor Advised fund (DAF)?
a. Yes. We recommend the following 3 Donor advised funds.
i. U.S. Charitable Gift Trust
ii. Fidelity Charitable
iii. Knights of Columbus
b. Donor Advised Funds allow for bunching of many years of donations consolidated into one year to reach the threshold to itemize deductions on your tax return filing thus decreasing your taxable income in that year.
c. DAF accounts also provide for multiple charities to be easily supported through a simple process of making grants in amounts as little as $100 to many charities over many years all from 1 dedicated charitable account. Money in your DAF account grows tax-free.
*A donor can generally take an immediate income tax deduction for charitable contributions of money or property to — or for the use of — a DAF if the donor itemizes deductions on his or her federal income tax return. The amount of the deduction depends on several factors, including the amount of the contribution, the type of property donated, and the donor's adjusted gross income (AGI). Generally, deductions are limited to 50 percent of the donor's AGI. For 2018 to 2025, the limit is increased to 60% for charitable contributions of cash to public charities. If the donor makes a gift of long-term capital gain property (such as appreciated stock that has been held for longer than one year), the deduction is limited to 30 percent of the donor's AGI. The fair market value of the property on the date of the donation is used to determine the amount of the charitable deduction. Any amount that cannot be deducted in the current year can be carried over and deducted for up to five succeeding years.
Moreover, there are no federal gift tax consequences because of the charitable gift tax deduction, and federal estate tax liability is minimized with every contribution since donated funds are removed from the donor's taxable estate. Additionally, DAFs are not subject to the excise taxes levied against private foundations.
8. How do I leave Cornerstone Foundation a bequest in my Estate Planning Documents or Will?
a. Naming Cornerstone Foundation as a beneficiary in your Will or Trust.
i. Consult your legal advisor with our sample language for your will or trust.
ii. Sample language to be inserted into donor’s will:
"I give to Cornerstone Foundation, Inc., a nonprofit corporation currently located at 15 Prospect Street Vernon CT 06066-9998, or its successor thereto, [$25,000, twenty-five thousand dollars or 10% of my estate or written amount or percentage of the estate or description of property] for its unrestricted use and purpose."
9. What is Cornerstone Foundation's Tax Identification Number?
a. Our Tax EIN is 22-2587192.
10. What specialty items does Cornerstone need donated to help day to day operations run smoothly?
a. We need a New or Used Box truck/panel/cargo van to pick up food and donations for our Shelters,
Soup Kitchen, Clothing Bank and Food Pantry.
b. We need a Pallet-Truck to unload pallets of Food at our Pantry.
c. We need a Portable Generator for emergency use at our Shelters.
d. We need an iPad for Volunteers to check-in and log hours.