Is Your Nonprofit Accepting Stock Donations?

First and foremost, the benefits and tax savings of donating stock frequently encourage donors to give what would be considered major gifts, perhaps for the first time. how to accept stock donations Gifts of stock are usually quite larger than cash gifts, and they represent a huge pool of potential donation revenue—the US Census estimates that 97-99% of wealth is held in non-cash assets. In addition to providing donors with another option to give, there are huge perks for donors who give nonprofit stock donations.

Automatically send donors the transfer instructions for their brokerage.

Those who want to donate Accounting for Churches stocks are more likely to find a nonprofit that allows them to do that, rather than settling on one that doesn’t. Supporters who prefer to give stocks may do so at a different time of the year than those who give large gifts. That balances out your books so you won’t feel major tides in fundraising. Donors that have stock with a fair market value of at least $500 are eligible to donate stock via Donorbox’s integration with The Giving Block.

A Quick Overview of How a Nonprofit Can Accept Stock Donations:

According to one study, nonprofits that received both cash and securities gifts were able to grow contributions over a five-year period at a rate five times greater than those that received only cash gifts. With stock donations, you are giving charities more, in terms of value, without increasing the amount given, in terms of out-of-pocket cost. This can make an even bigger impact and can allow more flexibility on the part of the charity. Let’s take a closer look at how it works, starting with the tax benefits. As with most charitable contributions, donors are able to deduct the full fair market value of their gift from their taxable income.

Collect On the Trend of Securities-Based Gifts

This information is still important to share, but by not leading with it, the organization reduces the chances that a new donor will unknowingly give anonymously. The third option is for financial advisors to initiate a gift on behalf of a client. Platforms like FreeWill make it easy to address all the concerns discussed above. You can create a lead-capture page for stock donors, steward your relationships with ease, and automate form and receipt delivery. Use a tool designed specifically for stock donation to streamline the process and improve the donor experience. If you have any questions regarding stock gifts, or any other issue affecting your not-for-profit organization, please contact your local Blue & Co. advisor.

ways to drive more stock gifts to your nonprofit

• Remember to reduce any friction with your donor by making the process as easy as possible.
• In fact, over 50% of all charitable donations between 2017 and 2020 were non-cash assets.
• While donating to charity is commendable, gifting stock doesn’t always make sense, particularly if the price of a stock you want to donate has declined in value since you bought it.
• CFO Selections has created strong connections with nonprofit organizations throughout the regions we serve, in Oregon through our partnership with the Nonprofit Association of Oregon (NAO).
• The information here is provided for educational purposes only and is not intended to provide, and should not be construed as providing legal or tax advice.

Today, however, accepting stocks from donors doesn’t have to be a burden to your organization. The good news is that modern technology now offers an easy, stream lined alternative to the big bank methods of the past. If they don’t, you can contact the QuickBooks charity or your financial advisor for more information.

Don’t forget this important step—it’s crucial to thoughtfully market your new stock gifting option to the right supporters. That means more and more people are prioritizing other ways to support nonprofits other than handing out a cash gift. CFO Selections has created strong connections with nonprofit organizations throughout the regions we serve, in Oregon through our partnership with the Nonprofit Association of Oregon (NAO). Donating stocks directly to registered charities can be one of the most tax-smart ways for donors to give. Written in partnership with Andrea Young, Co-Founder & CEO of DonateStock. With more than 20 years of business development experience, Andrea is passionate about start up business and an advocate for social impact.

The drawbacks of this method of accepting stock donations

Learn more about our stock giving tool and how it streamlines both the donor experience and your job. Due to rising interest rates over the past year, 21 percent of people contributed more to stock-related investments and 27 percent are expecting to contribute more, according to a May 2023 Bankrate survey. Anh Tran and Janice Hobbs are registered representatives with, and securities and advisory services offered through LPL Financial, a registered investment advisor. Our goal is to alleviate stress, create stability, and provide the guidance you need to create the future you want for yourself, your family, and the world. Contact us to discover how you can align your philanthropic goals with your financial plan and make the most of your hard-earned wealth.

• With more than 20 years of business development experience, Andrea is passionate about start up business and an advocate for social impact.
• The Nonprofit Blog provides several guides, ideas, how-tos, and more that cover a variety of topics, from online giving to fundraising events and beyond.
• Donorbox’s new integration with The Giving Block allows nonprofits to accept donations of stock and crypto – which majorly boosts both their fundraising revenue and donor acquisition.
• If you’re unsure how to start accepting stock donations, you’ve come to the right place!
• In addition to accepting crypto and stock donations, Donorbox’s top-of-the-line giving forms are built with your organization and donors in mind.
• If they don’t, you can contact the charity or your financial advisor for more information.
• We can’t wait to help you unlock transformative gifts to drive your mission forward.

What you need to accept stock donations

After the stocks are processed, your organization receives a check for all stock donations made during a given period. Ultimately, stock donations allow for donors to give more to the causes that are meaningful to them and for nonprofits to maximize their fundraising potential. Generally, donors aren’t making stock donations simply because they don’t understand the benefits and nonprofits aren’t asking for them. Once we’ve liquidated the donation and sent it to your brokerage account, our stock gifting platform automatically generates a tax receipt with all the necessary information and sends it directly to your donor.

Together, these benefits can represent significant tax savings for donors. At Infinite Giving, we believe that every nonprofit should be able to accept stock donations. The question has occasionally come up from our clients “Can my donors gift private shares of stock?” The answer is yes, although it is a slightly more complex process. Though these private shares gifts are less straightforward than publicly traded stock donations, they can be fruitful and impactful.