The technological advancement and fast-paced social and corporate environment require charities to evolve to boost their growth. A nonprofit receiving stock donations can benefit by allowing their respective organizations to accept stock donations online.
According to a study, when a nonprofit accepts donations online, it showed a 66 percent improvement in their growth rate. So, if you are a charitable organization considering accepting stock donations, here is how you can do it without breaking a sweat.
Steps to Accept Stock Donations Online
Here is the most simplistic way of accepting stock donations online.
- You will be using Stock Donator as your main application
- Now you must create an account on Stock Donator; it is completely free
- Sit back and relax while Stock Donator handles all the hassle of paperwork and accepting stock donations on your behalf.
- Once Stock Donator has accepted stock donations on your behalf, it will cash your shares and forward you any proceeds via bank check or direct wire transfer. However, the cash amount you will receive will exclude any service charges, fees.
How to Open a Stock Donator Account
If you wish to open a free Stock Donator account in order to accept donations online, here is the information that you will need to complete your form. These include primary contact information, tax ID, and your wire transfer or check preference.
You will first have to enter all your information into the form. The Stock Donator team will then confirm your organization’s non-profit status. Upon successful verification as an NPO, they will activate your account. That said, this entire process does not take longer than a couple of hours.
Are There Any Benefits of Accepting Stock Donations Online?
Here are some merits of why accepting stock donations can be beneficial for NPOs like yourself.
- It allows you to accept non-cash assets like Stocks, ETFs, and mutual funds.
- Immediate liquidation of stocks allows your NPOs immediate access to cash to run your operations.
- Stock Donator makes Stock Donations accessible and streamlined to 501(c) (3) non-profit organization.
- As you set up an account on Stock Donator, it is completely free of cost. The best part is that Stock Donator will also assist your NPO in soliciting the received online stock donations with new, current, and potential donors.
What Type of Securities Are Acceptable as Stock Donation
Most non-profit organizations often wonder what type of securities they can accept from the donors. Here is the essential review of all types of securities you can receive before starting offering Stock Donation options to your donors.
Once you are on the Stock Donator program, your NPO will accept all types of stock donations, including ETFs, mutual funds, stocks, and shares. However, you will not be able to help your donors to transfer any of their privately-held securities.
It is crucial for you to note that a supported or participating brokerage institution will be responsible for holding the mutual funds. This way, they will be able to facilitate acceptance of any online mutual funds on behalf of your non-profit organization.
The best part is that you will not need a brokerage account to accept any stock donations. Stock Donator will take care of that for you.
The Takeaway
If you choose to accept stock donations online, it will give you easy access to immediate cash. So no matter if you are a small or a big NPO, everyone can benefit from this opportunity. It is secure, simple, and an efficient medium to accept stock donations, making them a perfect solution.
So, what are you waiting for? Make an account and start today!
