As the world shifts in new ways to usher in modern economic and social demands, charities can significantly improve their growth. Nonprofits benefit by allowing their organization to accept donations online in the form of a stock gift or mutual fund donation. Charitable giving has significantly increased in the last several years, as shown in Dr. Russell N. James’ nonprofit study between 2010 and 2015. His research showed that nonprofits that accepted non-cash asset donations saw a growth rate of 66%, while organizations that only took cash contributions saw 11% growth. That is a 55% difference in growth rates.

The Benefits of Accepting Donations Online

There are significant benefits to charities that accept donations online. Namely, non-cash assets in the form of stocks, mutual funds, and ETFs bring considerable growth to nonprofits. Every nonprofit is looking to get the money they need to run operations, which is why we make liquidating stock donations streamlined and accessible to all 501(c)(3) organizations. Setting up an account is free, and we will show you how to promote the Stock Donator option on your website, e-mails, and throughout all communications with current, new, and potential donors.

The Types of Securities You Can Accept

Before you start offering this option to your contributors, it is essential to review the securities you can accept online as a stock gift. Your organization can accept donations online in the form of shares, mutual funds, and ETFs. Unfortunately, we are not able to make transfers of privately held shares with certificates only. It is important to note that the mutual funds will need to be held by a participating or supported brokerage institution to transfer. The good news is that you do not need a brokerage account to get started. We will help you with that.

How to Accept Donations Online Through Stock Donator

As the nation’s leader in secure online stock donations, we have been honing this process for more than nine years. As seen in our reviews, our priority is to make this process seamless, enjoyable, and exciting. We started doing this because nobody was making it easy; therefore, we vowed to bring simplicity back to our communities by making it easier to support nonprofits in a more impactful way.

As your organization’s limited attorney-in-fact, we will facilitate the transactions made by your contributors using our secure and tested platform. Here is how it works:

  1. You create a free account on Stock Donator.
  2. You follow the step-by-step instructions to add Stock Donator to your digital assets.
  3. Stock Donator will take care of all the paperwork to facilitate the transfer of the stock gift.
  4. Stock Donator will provide the proceeds net of any fees and service charges via direct wire transfer or check.

To set up your free account, you will need to have the following information handy to complete the form:

  • Tax ID
  • Primary contact information
  • Check or wire transfer preferences

Remember, you can also keep the stock as an investment.  You do not need to liquidate right away. Once you enter your free account information, we will confirm your nonprofit status and activate it. The process typically takes about a week to complete.

Here’s What NPOs Should Know About Online Stock Donations

Unrestricted cash donations are the most effective way to support your nonprofit’s operations; however, they are not the easiest donations to receive. You may not be getting as much as you could be getting with other types of contributions. It is difficult to convince donors to give up their hard-earned money. Offer them a way to donate non-cash assets like stocks and mutual funds instead.  Adding this option for your donors will help your NPO growth rates significantly. Before you accept donations online, there are a few things you should consider before taking hold of that stock gift.

  1. Your charity’s accounting system should be set up to track stock donations. You will want to ensure donated funds are used and measured appropriately.
  2. Stock gifts are a win-win for the organization and the donor. The organization receives the full fair market value of the shares, and the donor takes an itemized deduction equal to the fair market value. Therefore, it will be necessary for the charity to create a policy that outlines how it will allocate, use, and manage the funds received from stock donations. For example, will the stock gifts be liquidated immediately, or will they be held as an investment?
  3. Nonprofit organizations do not need to have a brokerage account to accept donations online through Stock Donator. We will help you with that!

Accepting donations online in the form of a stock gift is easy, and organizations, both big and small, can benefit from providing this option to supporters. In an age where the world has changed dramatically in just a matter of months, people are looking for more ways to give back to the incredible charities that align with their values. Offer them a win-win option and accept donations online through Stock Donator. It is a simple, secure, and effective way to finance your nonprofit organization and bring more convenience to donors.