A study by Dr. Russell James of Texas Tech University found that just mentioning strategic tax deductions increased charitable giving by almost 20%. Because donors hold more wealth in stock than in cash, stock donations tend to be larger than cash donations. After receiving a stock donation, the final step is to send the donor a tax receipt that complies with IRS requirements. As a result, accepting stock donations was a time- and resource-consumptive task for nonprofits and donors alike, eluding all but the largest nonprofits. ‍Plus, if your nonprofit prefers to immediately liquidate stock gifts (recommended to ensure maximum value), their impact will be delayed and their accounting will be complex. You’ll need to direct your broker to liquidate received gifts, potentially pay fees, and then wait for the net cash proceeds to transfer.

• Together, these benefits can represent significant tax savings for donors.
• Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range, can also impact how and where products appear on this site.
• Because stock donations will help you minimize your capital gains tax and make a bigger donation to the name of your nonprofit .
• There are a few key benefits that donors experience when donating stock to a nonprofit.
• All donations should be tracked using an accounting program or your CRM.

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When you diversify your revenue stream, you can balance out the ebbs and flows by offering a choice for your supporters. In this day and age, there are many different ways someone can choose to support a nonprofit. Security and privacy are paramount, which is why we designed DonateStock to be robust at how to accept stock donations every step of the process.

What are the benefits of donating stock for donors?

• When handled properly, private share donations can unlock significant opportunities for nonprofits.
• You can create a lead-capture page for stock donors, steward your relationships with ease, and automate form and receipt delivery.
• If you’re looking to expand your target audience, consider diversifying giving options for your nonprofit to entice more people to donate.
• Even though more than half of Americans now own stock, over 1 million charities and nonprofits in the US still can’t access non-cash donations.
• Yes, there are many nonprofits accepting stock donations, including several that are utilizing the integration with Donorbox and The Giving Block.
• New donors enter select brokerage account information in a secure form.

Appreciated stock represents $100 billion in potential funding – it’s time to unlock it for all nonprofits. With our Easy Button for Stock Gifting™ nonprofits can quickly grow stock donations with comprehensive support. For years, stock donations have been one of the most convoluted ways of giving, making it accessible primarily to wealthy donors or donors with wealth management advisors.

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That means more than a third of the money from the shares is going to the government. Even if the stocks were sold to make a donation, the money spent on taxes is gone forever and can’t be used by the donor or the charity. When you Accounting for Churches donate shares of stock to charity, you’ll be required to fill out IRS Form 8283 when you file your income tax return.

• ‍No matter your reasons, you’ve decided your nonprofit needs to begin accepting stock donations.
• 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.
• This is a perk for the nonprofit as well because it means they receive the full value of the stock, which can all be used towards their mission.
• Using the right tools and taking the right approach makes all the difference when expanding into a new form of giving.
• Her experience helps business owners quickly accomplish their financial goals.

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Then, they will enter their personal information and their broker information. As we mentioned above, 61% of Americans report owning stock in 2023. This number is significant in online bookkeeping part because it’s the highest level of stock ownership since the financial crisis in 2008. It points to a renewed trust in investing and this trust is projected to convince more people to invest in the stock market.

Accelerate growth with an Easy Button for stock gifting

And a stock’s value raises and lowers depending on the company’s actions and the current economic climate. But ultimately, the public’s overall opinion of the company typically offers a large impact on the value of a stock. For most nonprofits, it takes about 20 minutes to apply for a brokerage account with Infinite Giving.

Helpful context on stock fundraising

• If you’re interested in capturing the opportunity stock donations provides for your fundraising capabilities and you are wondering how to accept stock donations, book a demo with our stock donations team below.
• Let’s take a closer look at how it works, starting with the tax benefits.
• If your organization should allow it, they can have their choice of writing a check, paying with a credit card, or paying through cryptocurrency.
• 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 this link, donors can quickly gift their appreciated stocks to you. Historically, to receive a single stock gift, nonprofits had to do a lot of work. Even the first step (opening an account with a brokerage firm) could take weeks to complete. The first step when donating stock is to check whether the charity you are considering can accept stock donations. If not, contact the charity and ask if they accept donations of stock. You may also need information like the charity’s brokerage account number and mailing address, so ask for this upfront.