Why accept stock donations?

Stock donations tend to be larger donations, and the nonprofits that keep receiving them grow faster. Here is the research, the donor's side of the math, and what it takes to start.

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6×

faster growth in contributions for nonprofits that keep receiving stock gifts

Six times faster.

Nonprofits that keep receiving stock donations grew contributions six times faster than cash-only peers.

The finding comes from an analysis of more than a million nonprofit tax returns by Russell N. James III, published in Nonprofit Management & Leadership in 2018. Stock gifts tend to come from donors with appreciated assets, which is why they tend to be larger than gifts by card or check.

Source: analysis of 1M+ nonprofit tax returns. Russell N. James III, Nonprofit Management & Leadership (2018). doi:10.1002/nml.21334

Why donors give more when they give stock.

A donor who sells appreciated shares pays capital gains tax before giving. A donor who gives the shares directly generally doesn't, so more can reach you at the same cost to them.

The holding period matters
For shares held more than one year, a donor who itemizes may generally deduct the full market value. Shares held one year or less are treated differently.
There are limits
Deductions for appreciated stock given to public charities are generally limited to 30% of adjusted gross income, with a carryforward.
It's the donor's decision
Point donors to their own tax advisor. Your job is to make saying yes to stock easy.

General information, not tax advice. Donors should consult their tax advisor.

The donor's calculator

What reaches you: $10,000 of stock, $2,000 cost basis

Donor gives the sharesNo capital gains tax
$10,000
Donor sells first, gives cashAfter an estimated $1,200 tax at 15%
$8,800

Illustration at a 15% federal long-term rate; excludes the 3.8% net investment income tax and state taxes.

What it takes to start: minutes.

The old barriers were a brokerage account, a securities specialist and gifts shepherded by hand. None of them apply.

No brokerage account
Donors send shares from their own broker, and you receive the cash.
A donate-stock page that asks for you
Put your link on your website and in your appeals; donors give in a few clicks.
Nothing to process
We sell the shares, receipt the donor and deposit the funds within 2–3 business days of the sale.

See how it works