Frequently Asked Questions & Impact Fund Infomormation
MortarStone Charitable Trust is a 501(c)(3) public charity that helps donors maximize their generosity through its donor-advised fund, called Impact Fund.
Opening an Impact Fund
Individuals may open an Impact Fund at MortarStone Charitable Trust.
During the Impact Fund setup, donors provide basic information and choose a fund name. The name may be related to a family (e.g., Smith Family Charitable Fund) or a charitable giving purpose (e.g., Clean Water Fund). MortarStone Charitable Trust reserves the rights to modify or decline proposed fund names.
The individual who establishes the Impact Fund is the Primary Account Holder and may add an additional Account Holder. Account Holders have equal advisory privileges on the Impact Fund.
Impact Fund Types
Individual Impact Fund: Designed for individuals and their families who want to start a tradition of tax-smart grant-making
Organizational Impact Fund: Designed for trusts and limited business entities
Corporate Impact Fund: Designed for companies that would like to facilitate corporate philanthropy
Contributions
MortarStone Charitable Trust accepts a wide range of financial assets to fund an Impact Fund, including:
Cash via check, electronic funds transfer (EFT), wire transfer, or a brokerage account
Stocks and other securities, such as publicly traded stocks, mutual fund shares, or bonds
Privately held business interests
Other non-publicly traded assets, such as restricted stock, life insurance, or cryptocurrency
All contributions are subject to review and approval by MortarStone Charitable Trust.
Minimum Contributions
Individuals, families, corporations, nonprofit organizations, and businesses may establish an Impact Fund by completing the Impact Fund Application and making an irrevocable gift of $10,000 or more to MCT. If started with a contribution of less than $10,000, the fund balance must reach $10,000 within 2 years of fund inception.
Grant Making
Impact Fund advisers have grant recommendation privileges. Grants may be recommended by email, or by submitting a Grant Recommendation Form. All grants are made for charitable, religious, scientific, literary, or educational purposes (collectively, “charitable purposes”).
Grant recommendations will only be considered if they are a minimum of $500. Recommendations are reviewed by MCT and, if approved, grants are typically made within several weeks of receipt of the recommendations.
Click to download the Charitable Organization Fund Recommendation Form.
Contribution Confirmations and Tax Forms
MortarStone Charitable Trust sends a confirmation of each contribution to the contributing party as required by law. Contribution confirmations serve as a donor’s tax receipt and should be reviewed carefully. It is the donor’s responsibility to report any errors to MortarStone Charitable Trust. While MortarStone Charitable Trust may provide a fair market value computation as a courtesy, donors are responsible for the value they claim as a deduction on their taxes. Please consult a tax advisor before claiming any deduction.
Note: As a courtesy, MortarStone Charitable Trust also provides a summary of information needed for filing an IRS Form 8283 to donors who contributed publicly traded securities valued at $500 or more.
Contribution Processing
Processing times vary for different asset types. From late November until the last business day of each calendar year, special guidelines may apply in order to ensure delivery and acceptance of securities before the December 31 tax deadline for claiming a charitable tax deduction. Account Holders may need to initiate contributions early.
Tax Considerations
Donors are generally eligible to take an itemized deduction once the charitable contribution to MortarStone Charitable is made. The value of the deduction will likely depend on the type of asset contributed. While this guide only addresses federal taxes, please consult a tax advisor as there may be additional rules and regulations at the state level or depending on your specific circumstances.
Tax Treatment of MortarStone Charitable Trust Income and Grants
Any income accrued to an Impact Fund related to a contribution is MortarStone Charitable Turst income, not of the Account Holder’s taxable estate. Therefore, the Account Holder is not subject to tax on that income and cannot take further charitable contribution deductions on that income. Income or loss to MortarStone Charitable Trust will be reflected in the value of each Impact Fund.
When MortarStone Charitable Trust disburses grants to charities, MortarStone Charitable Trust is granting its own assets. Account Holders who make grant recommendations are not eligible for additional charitable deductions for these grants. If an Account Holder receives a tax receipt from the grant recipient in connection with a grant from MortarStone Charitable Trust, it may not be used for tax purposes.
Other Considerations
Under the Internal Revenue Code, charitable contribution deductions are subject to certain percentage limitations. This regulates the deductions taken to a stated percentage of adjusted gross income (AGI) in the year the contribution is made. Contributions in excess of this limit may be carried forward up to five subsequent years.
Deductions for contributions of long-term capital gain property (such as appreciated securities held for more than one year) may be taken up to 30% of AGI. Deductions for cash contributions may be taken up to 60% of AGI. Please consult your tax advisor to determine your tax deductibility limit.
Successor Options
MortarStone Charitable Trust offers three distinct successor options to allow Account Holders to continue their charitable legacies beyond their lifetime. Account Holders can elect one successor option, or a combination of the three.
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Process
Individual successors can choose to either 1) create a new Impact Fund and hold all privileges associated as an Account Holder; or 2) recommend grants equal to the allocated balance within 90 days of written notification from MortarStone Charitable Trust.
Benefit
Carry on your charitable legacy by encouraging a tradition of giving by including a spouse, child, descendants, or other representatives.
Things to consider
Individual successors may not access or receive a deceased Account Holder’s personal information or Impact Fund transaction history.
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Process
At the time of the death of the last remaining Account Holder, eligible grant recipients will receive the Impact Fund balance. If the named organization is not an eligible grant recipient, the Impact Fund balance will be reallocated among the successors.
Benefit
Support the same charities you do now.
Things to consider
Successor charities are subject to the MortarStone Charitable Trust grant review and due diligence process, and must be reviewed and approved by the Board of Trustees.
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Process
The program allows donors to recommend recurring grants to up to six qualified charities after the death of the last remaining Account Holder.
The minimum annual grant distribution is 5% of the Impact Fund balance, or the applicable IRS minimum percentage.
If the Impact Fund balance falls below $5,000, MortarStone Charitable Trust may grant the remaining balance to the recommended charitable organizations.
Benefit
Create an enduring giving plan and support your favorite charities over time.
Things to consider
An Impact Fund must have a balance of at least $100,000 after all other recommended successor options are fulfilled to participate.
Grant recommendations are subject to the MortarStone Charitable Trust grant review and due diligence process, and must be reviewed and approved by the Board of Trustees.
Fees & Expenses
Administrative fees = 1%
Ready to Get Stared?
Opening an Impact Fund is fast and easy, and there is no minimum initial contribution.