Choose from 1 Million+ Orgs Receive Tax Benefits

Imagine that a high-income donor who normally donates mid-level cash gifts to your nonprofit also owns multiple publicly traded stocks. When your nonprofit lets them know they can give a larger contribution and reduce their own tax obligations, they jump at the chance to donate high-value stock. Once your nonprofit receives the donation, you may choose to reinvest it to increase the donation’s value even further or liquidate it into cash. Avoiding the capital gains tax is one of the primary reasons why donors consider contributing stock donations. 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.

Increase your gift to charity—and your tax deduction—with one simple strategy

• Don’t forget this important step—it’s crucial to thoughtfully market your new stock gifting option to the right supporters.
• Let’s take a closer look at how it works, starting with the tax benefits.
• A simple, easy way to give away appreciated stock and do it all (contribute and grant) in one place.
• Make a larger impact by gifting stock and donating long-term appreciated securities, including stock, bonds, and mutual funds, directly to charity.
• Once sold, any difference between the fair value and the amount received is recorded as a realized gain or loss.
• Because donors hold more wealth in stock than in cash, stock donations tend to be larger than cash donations.

It’s also the only brokerage account holder that has the technology to simplify this process for you. FreeWill makes accepting stock donations easy and safe for both your nonprofit and your donors. We give you the online tools you need to promote and accept gifts of stock, smoothly walk your donors through the process, and actively manage your growing revenue stream. When a donor gives stock shares directly to a nonprofit, they avoid having to pay capital gains tax on those shares AND they can still deduct 100% of the value of their contribution. Thus, they can receive a tax write-off at the market value of the stock upon donation—regardless of what they bought the stock for.

Reasons Why Nonprofits Should Accept Stock Donations

Donating stocks directly to registered charities can be one of the most tax-smart ways for donors to give. We take care of the immediate liquidation of the gift and deposit it directly into your linked bank account while providing real time donor transparency and all donation receipts. Elsensohn recommends bunching deductions, or making all of your charitable donations for the next few years in one year, so you can itemize an amount that’s higher than the standard deduction.

How to Accept Stock Donations The Donorbox Guide

Anyone with stock that has appreciated in value that they’ve held longer than one year should consider stock donations. Put away your checkbook and open up your brokerage account to maximize the impact of your charitable donations. According to a recent study by Fidelity Charitable, only half of respondents knew you could even donate stock, and fewer than one in five have actually done so. With these tips in mind, your nonprofit will be on the path to leveraging stock donations in no time. Once you start seeing positive results, consider branching out to accept other noncash donations as well and truly tap into the future of online giving.

• Anonymous gifts mean that you can’t thank stock donors or actively build relationships with them, greatly complicating follow-up and stewardship.
• When you choose to open your nonprofit to accepting stock donations, your organization can attract those that are determined to only offer stocks for charitable purposes.
• The advantages of donating stock, especially if it has appreciated in value, can include a larger contribution to the charity, potential tax savings, and the ability to avoid capital gains tax.
• Later, with no set deadline, you can advise the fund on where the stock should go and which charities.
• Make sure that stock donors have a place near the top to adequately express your thanks.
• KANSAS CITY, Mo. (KCTV) – On Saturday, an organization working to improve the lives of children and families in the heart of Kansas City announced it had received an early holiday present.

This way, the amount that would otherwise go to the IRS as taxes stays with the charity instead. Fidelity Charitable accepts a wide range of financial assets, from cash and checks to stocks and even non-publicly traded assets. Once liquidated, you can recommend how to invest among our 25 investment options and begin recommending grants to eligible nonprofits. Our Charitable Investment Advisor Program and DonorFlex Program offer additional investment opportunities for eligible account holders. Deductions for contributions of long-term capital gain property (such as appreciated securities held for more than one year) are limited to 30% of AGI. 3Amount of the proposed donation is the fair market value of the appreciated securities held more than one year Bookkeeping for Chiropractors that you are considering to donate.

The traditional way to accept stock gifts

Anonymous gifts mean that you can’t thank stock donors or actively build relationships with them, greatly complicating follow-up and stewardship. We take care of all the details so you can focus on thanking your donors. Sending correct tax receipts is vital to ensure that your donors can claim their charitable tax deductions. Fortunately, while traditional investment advisors often don’t send donation receipts at all, Infinite Giving automatically Certified Public Accountant sends them for you.

Dr. Russell James at Texas Tech University studied over 1 million nonprofit tax returns between 2017 and 2020. That’s more than likely because they want to avoid the capital gains tax, as we mentioned earlier. Those who want to donate 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.

It points to a renewed trust in investing and this trust is projected to convince more people to invest in the stock market. 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 how to accept stock donations to do so as the number of people investing in the stock market continues to grow.