How Can Charities Accept Stocks as A Gift?
The world of charity has changed over time. Organizations have moved from traditional cash charities to other methods. One of the most common non-cash charities that you might come across is a stock charity, (also called a security charity). Companies usually make these charities by donating their company shares to the organization. It is one of the fastest-growing donation methods around the world.
Why Is Stock Donation Popular?
Stock donation for charity is popular around the world because of its ease, functionality, and benefits. The world saw a lot of changes during the pandemic as people changed their lifestyles completely. Stock charity turned out to be a great alternative for charity donors which caused it to increase around the world. Additionally, 90% of the U.S donated to noble causes in 2020.
A prime reason for this is that giving stocks as a charity does not only benefit the receiving organization but the donor too. If you are curious about how these charities can accept stocks as a gift; then, look no further. We have covered everything in this article to help you understand things better. So let us begin without further ado.
Why Are Stock Donations More Popular Now?
Stock donations are more popular because they allow donors to make transactions virtually. There are plenty of platforms and applications that you can use for this. These stock donations are also easy to track and record which makes regulating them better.
It is easier for organizations to maintain their tax exemption status as well, when they donate through stocks. IRS’ standard procedure accepts most of these stocks. All the donations made through these guidelines are acceptable and can help save tax amounts in the longer run.
Most affluent donors also tend to donate 20% more when they donated appreciated stocks because they save on tax amounts. All of these things make stock donations the best option for anyone with a philanthropic spirit at the moment.
How Does A Charity Accept Stocks as Gift?
There are two ways that an organization can accept stocks as a gift. We will be covering both these methods so that you can understand things better.
Charities understand that they might not come across someone tech-savvy all the time. They might need alternate methods to ensure they get stock donations on time. It is why these non-profit organizations have an online donation option as well. Unlike the other method, this one does not require the internet on the donor’s end.
The donors can easily make their transactions by filling a Stock Donor Form. The form includes basic information including the amount and rate of the stocks on the day of donation. This method is more reliable for donors who are not very technically sound.
However, most of these organizations provide online donation assistance to help them out. If a donor still wants to donate offline; they are welcome to do so.
Charities understand that most people who make charities are busy. Therefore, they try to make their transactions as quick and efficient as possible. It is why most charities prefer online donations. These donations are easy and instant and allow the donor to complete the process without a problem. It is still important to keep a clean business portfolio if you wish to deal with this online donation method.
The best thing about these online methods is that they provide tracking and recording benefits as well. It means you can register all the online stock donations without needing any extra effort.
What is The Best Option for Online Donations?
Accepting stock donations online is easy but it is still essential to make them through a trustable source. If you aren’t sure which platform to use for it; try using Stock Donator. It is great for making online stock donations because of the following features
Prime Features of Stock Donator
- Cost Efficient:
Stock Donator is ideal for making transactions because it has low costs. You need to pay as little as 1.9%per transaction for maximum benefits.
- Minimum Amount:
You can operate the Stock Donator for a donation as low as $15 because every penny counts.
- Receipts And Paperwork:
You get complimentary receipts and paperwork when you make donations through Stock Donator so that you can maintain records easier.
- Website Widget:
It also has an easy button that takes the donor to the Donation Form for their ease.
With all that said, we assure you that there are plenty of ways that you can use to accept stocks as gifts. It doesn’t matter if you want to go for the traditional method or an easier effective approach with Stock Donator as long as you are giving back to the community. We hope that this guide helps you find the best way to make your stock donations. Feel free to connect with us for more information on the topic.