Table of Contents
- Introduction
- What Are Stock Donations?
- Why Your Board of Directors Matters
- Benefits of Stock Gifts for Donors and Nonprofits
- How to Ask Your Board for Support
- Tips for Following Up with Your Board
- Comparison: Cash Donations vs. Stock Donations
- Visual Guide: How Stock Donations Work
- Frequently Asked Questions
- Conclusion & Call to Action
Introduction
Your board of directors is one of your nonprofit’s most powerful fundraising assets. Beyond governance, they act as advocates, connectors, and leaders who inspire others to give. One often overlooked but incredibly effective way for boards to amplify their impact is by promoting stock donations.
With the right approach, your board can become champions for stock gifts—helping your organization tap into larger, tax-smart contributions while strengthening donor relationships.
What Are Stock Donations?
A stock donation occurs when a donor gives publicly traded shares instead of cash. This method of giving provides donors with significant tax benefits, often allowing them to avoid capital gains tax while still receiving a charitable deduction.
According to the IRS guidelines on charitable stock donations, appreciated securities held for more than a year can be donated at fair market value—making this one of the most tax-efficient ways to give.
Why Your Board of Directors Matters
Your board members are trusted voices in your community. When they endorse stock donations, donors listen. Their participation does three important things:
- Sets the example – When board members make stock gifts themselves, it shows commitment.
- Builds trust – Donors see that leadership is invested in the mission.
- Expands reach – Board members can share the message with their networks, multiplying impact.
Benefits of Stock Gifts for Donors and Nonprofits
For Donors
- Avoid capital gains tax on appreciated stock.
- Receive a charitable tax deduction for fair market value.
- Make larger contributions without affecting cash flow.
For Nonprofits
- Access potentially larger gifts.
- Strengthen long-term donor engagement.
- Diversify fundraising streams beyond traditional cash donations.
How to Ask Your Board for Support
Crafting the Perfect Email
Your board members are busy leaders—your message needs to be clear, warm, and concise. Your email should:
- Thank them for their leadership and commitment.
- Explain stock gifts simply in one or two sentences.
- Highlight urgency—why now matters.
- Outline their role as donors, advocates, and connectors.
- Include a direct call-to-action with next steps.
Sample Email Template
Subject: Help Us Grow Through Stock Donations
Dear [First Name],
Thank you for all the ways you support our mission. Your leadership means so much to our work.
I’d like to share a powerful giving option that helps us expand our impact—stock donations. When someone donates stock, they can give in a tax-smart way, often allowing their gift to go even further without added cash out of pocket.
You can help by:
- Making a stock gift yourself.
- Sharing this giving option with friends and networks.
- Introducing us to someone who may want to donate stock.
If you’re interested, reply to this email and I’ll provide simple instructions to get started.
Thank you for being such a vital part of our mission.
Warmly,
[Your Name]
Tips for Following Up with Your Board
Not everyone will respond immediately. After a week, send a friendly follow-up. You can also:
- Share a success story from a past stock donation.
- Mention it at the next board meeting.
- Call personally to reinforce the opportunity.
The key is persistence without pressure.
Comparison: Cash Donations vs. Stock Donations
| Feature | Cash Donation | Stock Donation |
| Tax Deduction | Yes, up to IRS limits | Yes, fair market value |
| Avoids Capital Gains Tax | No | Yes |
| Impact Potential | Fixed to cash amount | Often larger due to appreciation |
| Ease of Giving | Simple | Simple with Stock Donator |
Visual Guide: How Stock Donations Work
Alt text: Flowchart illustrating the process of donating stock to a nonprofit through Stock Donator.
Alt text: Side-by-side infographic comparing tax benefits and impact of cash vs stock donations.
Alt text: Graphic showing nonprofit board members promoting stock donations to expand donor reach.
Frequently Asked Questions
1. How do donors transfer stock to a nonprofit?
Through a brokerage-to-brokerage transfer. With partners like Stock Donator, nonprofits don’t need their own brokerage accounts.
2. Are stock donations tax-deductible?
Yes. Donors can deduct the fair market value of the stock at the time of donation, subject to IRS rules.
3. What if the stock has depreciated?
It may be better to sell depreciated stock, take the capital loss, and donate the cash proceeds.
4. Is this option only for large donors?
No—stock donations work for gifts of all sizes, from a few shares to larger portfolios.
5. How quickly does the nonprofit receive the funds?
Typically within a few business days once the transfer is completed.
Conclusion & Call to Action
Your board has the power to unlock transformational gifts by promoting stock donations. By leading through example, sharing the opportunity with their networks, and keeping stock gifts top of mind, they can dramatically expand your nonprofit’s impact.
At Stock Donator, we make stock giving simple, secure, and effective for both donors and nonprofits. Start engaging your board today—and watch your fundraising potential grow.
Ready to empower your nonprofit with stock donations? Get started with Stock Donator today.
