Many charitable organizations often ask us how to accept stock donations for nonprofits. If you are one of them interested in accepting stock donations for small nonprofits, this post will be your guide. Without further ado, let us dive right into it.
Everything a nonprofit needs to know on How to Accept Stock Donations.
Nonprofits receiving stock donations is not a new concept. There are a lot of questions that come to one’s mind on how to approach the idea of accepting stock donations for small nonprofits. In this section you will find answers to the most frequently asked questions on how to accept stock donations for nonprofit.
FAQs: Accepting Stock Donations as a nonprofit
Can a 501 (c) (3) Own Stock?
Yes nonprofits also known as 501 (c) (3) organizations can accept bonds, stocks and funds. In this regard nonprofits enjoy the same status as a shareholder of an organization or company.
Do Charities Accept Stock Donations?
Yes, you will find charities who will accept stocks as donations or gifts, as these can be beneficial for both parties.
Why Accept Stock Donations?
Accepting stock donations is easy, as the donor only has to visit your nonprofit’s page. connect their brokerage account, and choose the shares they wish to give away. As a nonprofit you only have to add 2-lines of programming code to embed stock donation options into your website.
Additionally, you can also avoid the 3 percent mark-up fee for each donation transaction charged on conventional donations made by debit/credit cards. Plus, nonprofits accepting stock donations experience 55 percent boost in their donations.
Why Are Donors More Generous with Stock Than Cash?
Donors are more generous with stock donations than cash because it helps them save and contribute a large sum by avoiding any capital gains taxes. If a donor wants to sell the share to make a donation, they will have to pay 37 percent tax first. Whereas, donating stocks help them avoid this financial burden, retain and offer full value on their stocks.
Why are Stock Donations Becoming Popular Amongst Donors?
Stock donation is no longer a difficult process and it helps donors save money on taxes. Plus, they can contribute the full value of share towards the charity instead of paying 37 percent in taxes. Therefore, donations are a win-win scenario for both donors and the nonprofit organizations.
How to Accept Stock Donations with Stock Donator?
Whether you are a NPO, here is a quick step by step guide on how you can accept stock donations for nonprofits with Stock Donator.
- Simply gather and enter your NPO’s contact information and tax ID.
- Register a free account with Stock Donator online.
- It will only take a few hours for Stock Donator to verify your 501 (c) (3) status. Upon successful verification they will activate your account.
- Simply login to your Stock Donator account and find a URL link to your customized and personal stock donation account.
- You will also get free access to tools that will help promote your nonprofit’s ability to accept stock donation directly from your website.
- You do not have to do anything, as Stock Donator will handle all the hassle on your behalf.