Build a brighter future for St. Louis, and lower your state taxes!
Thank you for considering a gift to Cornerstone Center for Early Learning. Through your use of our Youth Opportunity Program (YOP) State Tax Credits, you can reduce your Missouri state tax liability by 50% of the amount of your gift.
YOP is a state-sponsored program that provides tax credits to donors who help nonprofit organizations that make a positive difference in the lives of youth and thus the economic welfare of the state of Missouri. The state gives tax credits to reward eligible donors who support programs for Missouri’s children—the future of our state and the economy—and to increase funding for these programs. This allows donors who increase their giving as well as new donors to support local projects with funds they would normally owe on taxes. It’s a win-win!
Tax credits are available on a first come, first served basis for eligible gifts of $2,500 or more to Cornerstone Center for Early Learning that are made between 7/1/2022 and 6/30/2024 and support our Early Childhood Education Program. Your gift can take a variety of forms – cash (check, debit, credit), stocks, and various other donations. We’ll send you a tax credit application good for 50% of your gift. The Department of Economic Development will provide you with verification of credits with a certificate of eligibility to file with your Missouri state tax return.
If you have a Missouri state tax liability, you would be eligible to make a donation to receive a 50% tax credit. The tax credit is eligible for the year of donation plus 5 succeeding years.
Here’s an example of how YOP tax credits work*:
|Cash donation to Cornerstone||$5,000|
|Federal Tax Savings (based on 35% tax bracket) reduces taxes by||-$875|
|Missouri Tax Savings||-$132.50|
|Missouri YOP tax credit (50% of gift)||-$2,500|
|Total Cost of your gift||= $1,492.50|
(*Your results may vary – please contact your tax professional.)
When you give to Cornerstone through the YOP program, you help build a brighter future for St. Louis one child at a time. Your gift will provide licensed, accredited, award-winning care and education for children whose families otherwise might face barriers to access.
If you or someone you know would be interested in making a contribution using YOP tax credits, please contact Dani Smith, Development Director, at (314) 865-5244 ext. 134 or firstname.lastname@example.org.
Documentation Requirements for YOP Contributions
The following types of contributions are eligible for tax credit when contributed by qualifying Missouri businesses and individuals to an approved YOP project. All in-kind donations must be an approved line item in the organizations approved YOP budget. All applications for tax credit must include the documentation as described below.
Checks: Attach documentation that clearly shows the check has cleared the DONOR’s bank account. ALL pages of documentation must include donor name and/or account number. Contributions in the form of a check must be made payable to and endorsed by the approved organization. The date of the check is considered the date of donation.
Traditional Documentation: 1) A copy of the front of the check and the donor’s checking account statement showing the check’s posting; or, 2)A copy of the front and back of the check, along with proof of posting to the donor’s bank, such as a letter from the bank or other bank transaction showing the check #, check amount, and post date.
Online Banking Documentation: 1) Printout (microfiche) of front of the check, with check #, check amount, and post date; or, 2) Printout of front and back of the check, with “dda debits” or web address of donor’s financial institution at the top or bottom of the printout.
Electronic Funds Transfer/Debit: Donor provides a copy of their bank statement showing EFT or ACH, including donor name and last 4 digits of the account number, statement date, transaction date, recipient organization, and amount of donation.
Credit Card Donations: Credit card statement must show donor’s name and last 4 digits of the account number, as well as: billing cycle, date the charge was posted, name of the recipient organization, and amount of donation.
EMPLOYEE PAYROLL DEDUCTIONS
Initial form, signed by both the employee and employer, authorizing the YOP organization to deduct money from the employee’s paycheck, indicating the time frame for which the deduction is to take place, the amount of the deduction for each pay period, the number of pya periods, and the total to be deducted. Include the employee’s last payroll stub to show all deductions for that time frame.
REAL ESTATE CONTRIBUTIONS OR PURCHASE USING CREDITS
A copy of the deed, appraisal(s), and Phase I Environmental Assessment. At least two qualified, independent appraisals are required for real or personal property contributions. Exceptions: Commercial property valued at less than $50,000 and vacant or residential property with a value of less than $25,000 require only one appraisal. State licensed or certified appraisers must perform all appraisals.
PUBLICLY TRADED STOCKS
Documentation must show donor ownership of stock, transfer of stock to the organization, and sale of the stock by the organization.
Donor/taxpayer must provide a letter from their broker OR a copy of their brokerage account portfolio showing: donor name, name of recipient organization, name of security(s) transferred from donor account to organization, number of shares, and date of transfer: AND
Recipient organization must provide proof the donated stock was sold. Attach a copy of the brokerage statement showing sale of stock (name of security(s) sold, number of shares, date sold, amount) OR trade confirmation AND a copy of the front of the brokerage check or proof of payment from the stock sale.