Once you have your brokerage account set up and ready to receive stock gifts, it’s time to provide your donors with an easy way to give. The simplest way to help donors make stock donations quickly and easily is to leverage a donation page that lists stocks and other noncash gifts as options. When your organization registers for a brokerage account with Infinite Giving, you’ll receive a giving URL that you can embed in your website as well as your email and giving campaigns. With this link, donors can quickly gift their appreciated stocks to you. Not how to accept stock donations only is a stock gift tax deductible, but if a donor directly donates the stock to your organization, they can avoid capital gains taxes. However, not everyone knows this, so many donors will liquidate their stocks first.

Working With Nonprofit Investment Advisors: FAQs and Tips

You should also think about whether you want to sell all stock as soon as you receive it or hold onto it. You want to make sure all information is in your policy so donors know what to expect. At this point, you may be wondering how Cocatalyst goes through the process of handling these stock donations for you.

• Donorbox’s sleek, efficient, and effective donation forms get even more powerful when you give donors the option of giving stock and crypto donations in addition to credit card and digital wallet donations.
• Encouraging gifts of stock can unlock generosity from donors who might otherwise feel hesitant to give a major gift.
• It’s also best to avoid donating equity in publicly traded partnerships, including master limited partnerships.
• All donations should be tracked using an accounting program or your CRM.

Fundraising Automation

The good news is that it’s just as simple for a donor to donate stock as accounting it is for you to receive it when using this service. Accepting stock donations is an excellent idea for any charity for many reasons. You have a choice here between manually accepting this type of donation or using a service to handle the process for you. Since you own the securities on the date of receipt, Generally Accepted Accounting Principles (GAAP) require that you record the asset in your books at the fair market value on that date.

What you need to accept stock donations

• After selling the stock and paying the taxes, you would be left with $4,400 to donate.
• Check out the Captain Paul Watson Foundation, which is raising funds via online donations as well as stock and crypto to support, educate, and raise awareness for ocean conservation efforts.
• If you’re unsure how to start accepting stock donations, you’ve come to the right place!
• As a Registered Investment Advisor for nonprofits, Infinite Giving is here to help your organization navigate the complexities of accepting and managing private share donations.
• It’s much easier to make stock fundraising (and all non-cash fundraising) a sustained priority when it’s simple for your team and generates the data you need to steward and grow your relationships with donors.

Don’t forget this important step—it’s crucial to thoughtfully market your new stock gifting option to the right supporters. Designed assets to help you solicit and accept charitable stock donations. Personalize your content, images, and messaging to accept stock donations. Outside of those logistics, nonprofits should consider how they will nurture the ongoing relationship with these donors.

• Schedule a call with our team for personalized answers and expert advice on transforming your nonprofit with donor management software.
• If you hold stock in physical certificate form, you’ll need to sign the back of the certificate in the presence of a guarantor, which is usually the bank or broker, to transfer ownership.
• You may also need to create an investment policy if you only want to take specific stock donations.
• All they need to enter to complete the donation is the stock information, their personal information, and their broker information.

Never Enough Time: Marketing Planning & Prioritization Certificate

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. IRS compliant contribution receipts are sent to the email address provided by the donor as soon as the gift of stock is received to the account specified in the stock transfer DTS Instructions. Contributions are recorded and contribution receipts are dated as of the date the gift of stock is received. If you entered an Law Firm Accounts Receivable Management invalid email address or do not receive a contribution receipt, please email us at This letter should acknowledge the gift of the stock, including the ticker symbol, the number of shares received and the date the stock was received in the organization’s brokerage account.

#5:  You Can Donate to Nonprofits with ETFs and Other Securities Too

While you might be used to getting cash and physical item donations, have you considered why your donors might want to donate stocks instead? There are a few different benefits that might resonate with your donors and result in more donations or donations of a larger size. The American Red Cross, for example, has a stock donation transfer page that includes its brokerage account number, address and more. You’ll need to send this information to your broker to initiate the transfer. If you’ve got a hefty investment portfolio flush with gains from the past couple of years, a stock donation may help you donate much more efficiently.

Nonprofit Ministry Foundations Certificate

For one, gifts of securities such as stocks enable donors to contribute more to an organization and its mission than they might be able to on their own. Stock donations are also referred to as gifts of securities, which typically encompasses transfers of stocks, bonds, or mutual funds. Organizations equipped to receive stock donations often have a donation form for donors to complete.