Stock donations can be a powerful way for donors to give more – and for nonprofits to raise more – when the process is easy to navigate. The DonateStock and GiveSmart partnership helps organizations accept stock gifts alongside other fundraising efforts, giving donors more flexibility while keeping everything connected in one place.
With this partnership, nonprofits, schools, and associations using GiveSmart can efficiently receive stock gifts within minutes. The gift can be converted to cash on the nonprofit’s behalf as well.
Benefits for Donors
When donors gift appreciated stock to charity, they avoid paying capital gains tax they’d otherwise owe if they sold their stock for cash. At the same time, those donors get to deduct 100% of the current value of the stock.
For example, let’s say a donor bought a share stock 10 years ago for $1 and today it is worth $100. If she sold it, she would have to pay capital gains taxes on the $99 appreciation. She then would get the tax deduction only on the remaining amount. If that same donor gifts the $100 of stock to charity, she owes no capital gain tax and can deduct the full $100 on her taxes.
With DonateStock, it is safe, easy, and free to donate stock. No brokerage required.
Benefits for Nonprofits
Charitable stock gifting represents a massive untapped source of funding for nonprofits. More than half of US households own stock and investments outweigh cash holdings.
With looming uncertainty, now is the time to diversify revenue streams. Add stock gifting as a part of your fundraising strategy. Stock gifts represent an opportunity for larger gifts.
How it Works with GiveSmart’s Donor CRM
GiveSmart Donor CRM clients can accept a stock donation by choosing the ‘Stock’ option under the ‘Payment Type’ when adding a gift.
After filling in the details, DonateStock initiates the transfer from donor to nonprofit. This option is included and readily available to all Donor CRM users. Donating stock is accessible and beneficial to all, and there are millions untapped.
