If you're looking to expand your target audience, consider diversifying giving options for your nonprofit to entice more people to donate. Accepting stock donations is a great place to start! In this article, we walk you through the benefits of stock donations - for both you and your donors - as well as how you can use our integration with The Giving Block to easily accept gifts of stock within your online giving form.
These days, it’s vital to offer as many different ways for donors to support your nonprofit as possible – and there’s one big type of giving that many nonprofits overlook. Stock donations are easy, effective ways for nonprofits to increase their contributed income while offering lucrative perks for their donors.
According to a Gallup poll, 61% of people in the US reported owning stock in 2023 – a number that is on the rise from 56% in 2021. Stock donations have recently grown in popularity and will likely continue to do so as the number of people investing in the stock market continues to grow.
If you’re unsure how to start accepting stock donations, you’ve come to the right place! In this guide, we’ll walk you through the benefits of accepting stock donations, as well as how to easily ask for stock donations on your Donorbox donation form using our new integration with The Giving Block.
Let’s get started!
In the same way donors can give cash to a nonprofit, they can also give stock, ETFs, and other securities. The donated stock is then liquified or repurchased, typically by a broker, and your organization receives funds equal to the value of each share of stock based on that day’s sale price.
Donors can typically claim the fair market value of the donated stocks as tax deductions. Donating stock helps donors avoid paying capital gains taxes on stock that has increased in value. 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.
Donorbox’s new integration with The Giving Block makes it easy for nonprofits to receive stock donations. Any organization with a Donorbox Pro or Premium account can enable stock or crypto donations directly on their donation form.
Once donated, the stock donations go to the Rennaisance Charitable Donor Advised Fund. After the stocks are processed, your organization receives a check for all stock donations made during a given period.
It’s a simple way to give your donors more ways to support you! And it’s super easy on their end, too. All they need is their stock, personal, and broker information to donate!
Here’s what it looks like to give stock using this integration –
Sign Up to Accept Stock Donations!
In addition to being an easy way to bring in more fundraising revenue, stock donations significantly increase your donor acquisition, which leads to more long-term donor relationships. Read on to learn how stock donations help you connect with more donors.
Did you know that 90% of the average U.S. citizen’s wealth is tied up in non-liquid assets like stocks or business interest? This significant amount could be the reason why you’re hitting a ceiling with your donor acquisition – and why you should accept stock donations.
Donors who may not have the liquid assets to donate to your cause can choose instead to donate any stock holdings they have. This allows them to be charitable and receive tax benefits even when they don’t have significant liquid funds to donate.
In addition to providing donors with another option to give, there are huge perks for donors who give nonprofit stock donations. They don’t have to pay any capital gains taxes on the value of the security if it has increased in value while they held it.
Plus, depending on their gross adjusted income and a few other factors, they may be able to claim the full fair market value of the donation as a deduction on their taxes. This incentivizes donors to give more stock so they can avoid capital gains taxes while potentially getting a big tax deduction. So they get double the perks of a typical cash donation!
Because the fair market value can change quickly, stock donations are the only kind where the value of the donation may jump by 20% or more before the stocks are liquified. This means stock donations have the potential for even more tax benefits.
As we mentioned above, 61% of Americans report owning stock in 2023. This number is significant in 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.
With more people investing, nonprofits must accept stock donations to broaden both their donor pool and their fundraising revenue. This handy way of giving is a major win for both donors and nonprofits.
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.
Any organization in the U.S. with a Donorbox Pro or Premium account can enable this integration on their donation form. Once enabled, a donor can give stock or crypto directly through your donation form on your website or your Donorbox-hosted donation page.
Donors will simply select their Stock Ticker Symbol and Stock Name and input their share quantity. They will then see the equivalent dollar value, which must be at least $500 in order to complete their donation. Then, they will enter their personal information and their broker information.
You’ll receive an email notifying you once the donation is complete.
From there, the stock donation goes into the Wells Fargo account of Renaissance Charitable Donor Advised Fund. Stocks are usually processed and liquidated after 5-10 business days, after which your donor will receive a receipt.
You’ll then receive a check for all stock donations made during a 30-day period. It’s that easy!
Be sure to check out this step-by-step guide to learn more about using this exciting integration.
As investing in the stock market continues to grow, so will the interest in giving and receiving stock donations. Donors get the perks of avoiding capital gains taxes while often receiving tax deductions. Nonprofits get more money for their important mission and get connected with a whole new pool of donors. It’s a win-win!
Accepting stock donations is easier than ever with Donorbox’s integration with The Giving Block. 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.
The integration is easy to enable and requires no upkeep on your end. Simply activate it and start receiving checks! Ready to learn more? Read our guide to see this integration in action.
If you’re ready to get started, sign up or upgrade your existing account to a Donorbox Pro or Premium account today. You can do this from our Pricing page or your Donorbox account dashboard.
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. These online forms and donation pages are fully customizable and include options such as recurring giving, designated funds, tribute gifts, and more. Plus, Donorbox organizations have the ability to use UltraSwift™ Pay to make donating 4x faster. Check out the Donorbox website to learn more about our online donation forms and other innovative fundraising tools.
Looking for more tips to empower you on your fundraising journey? 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.
With Donorbox’s integration with The Giving Block, nonprofits receive checks reflecting the fair market value for donated stocks every 30 days. These donations are processed and sold by Renaissance Charitable.
With the right tools, it’s very easy for donors to make stock donations. All they need to enter to complete the donation is the stock information, their personal information, and their broker information.
When a security has been held for at least a year prior to donation, donors can typically claim the fair market value of the stock at the time of donation as a tax deduction. Plus, donating a stock that has increased in value during holding allows donors to avoid paying capital gains taxes.
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.
Yes, there are many nonprofits accepting stock donations, including several that are utilizing the integration with Donorbox and The Giving Block. 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.
Lindsey spent years wearing many hats in the nonprofit world. Whether she was helping arts nonprofits with their messaging and content, planning a fundraising gala, writing an NEA grant proposal, or running a membership program with over 400 members, she learned how to navigate – and appreciate! – the fast-paced world of fundraising. Now, she loves sharing those hard-earned lessons with the Donorbox community.
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Lindsey Baker Bower