Step 1: Research brokerage firms and open a brokerage account to accept stock donations. This involves visits to the branch to sign papers, and minutes of the organization authorizing an new account. Account fees might apply to inactive accounts and some brokerage firms require a minimum deposit.
Step 2: Send your brokerage account information to the donor, make sure to include the DTC and account numbers.
Step 3: Donor must find and complete the correct stock transfer form.
Step 4: The non-profit organization should continuously check their brokerage account until the stock donation appears.
Step 5: The non-profit must prepare the proper stock donation receipt and compute the correct stock donation value based on IRS Rules.
Step 6: The non-profit will then sell the stock, account for it, and transfer the cash from the brokerage firm to their bank account.
