Average increase in funds by accepting stock donations:
If you learn to ask for gifts from appreciated assets you’ll repeatedly GET more generous DONATIONS.
Dr. Russell James J.D., Ph.D., CFP®, professor in the Department of Personal Financial Planning at Texas Tech University completed a study reporting on data from 1 million NPO tax returns from 2010 – 2017.
This included IRS-released data from e-filed returns of more than 200,000 nonprofit organizations.
The following are the conclusions from his study:
- Non Profits that received only cash gifts had only 11% growth.
- Non Profits that constantly received non-cash gift had closer to 50% growth.
- Non Profits that received stocks and securities had closer to 66% growth.
A 55% difference in growth between accepting just cash and accepting securities.
Per the research:
- People are more likely to spend irregular, unearned gains (e.g., capital gains on appreciated assets) on luxury goods (O’Curry 1999) and philanthropy in particular (Reinstein & Reiner, 2012; Konow, 2010) than they are regular, earned income.
- Framing a donation as an exceptional event removes it from comparison with regular disposable income budget items and increases giving (Sussman, Sharma & Alter, 2015).