overview

• 501(c)(3) public charities can take advantage of an excellent tax strategy for their donations where the contributor can maximize their gift if the appreciated securities are donated directly. In this way, the profit can be deducted in taxes and maximize the gift up to 37%.

• Donating securities is a strategy that has increased in popularity, but many donors are still unaware

• Some of the tips to encourage this type of donation is to include a stock donation button on your website, or add the option in the emails you send to your donors, you can also post it on your nonprofit social networks or include it in your webinars.

Any charitable organization wants to increase their donations. In these uncertain times, that is doubly true. As the Coronavirus crisis has caused massive layoffs and sent the economy reeling, nonprofits have been hit just as hard as anyone. The services many nonprofits provide will be needed even more now that so many Americans are facing unemployment, eviction, and mental health difficulties as everyone stays home to keep each other safe. 

Accepting stock donations can help charities increase their donations by up to 37% within their existing donor bases. Plus, it helps your donors save big on their taxes. If you’re ready to start accepting stock donations, you can streamline the process by using Cocatalyst. Just visit our charities page to set up a profile and get started today.

While some of your donors may be familiar with donating shares of stock, other donors may need to be educated on the tax benefits of donating stock before they’re willing to dive in. You can easily provide key information to your donors to get them excited. We recommend a few tips to make things easier for your donors.

Include Stock Donations on Your Website

Make sure your donation page specifically notes that you accept stock donations as well as cash donations. Donors will see this when they are considering donating, and you can give them the quick information they need about the benefits of stock donation. Simply copy and paste the following text onto your website and the Jumpstart button when you signed up for Cocatalyst for your charity.

Hello donors! Our organization encourages you to donate stock rather than cash. Stock donations are up to 37% more tax-efficient, helping you avoid capital gains tax on any appreciated stock. Stock donations are fully deductible if you have owned the stock for more than one year. Please consider donating your appreciated stock to our organization to help us receive the full value of your donation, and to save you on your taxes! Visit www.givestock.org to learn more about stock donations.

Include Stock Donations in Email Campaigns 

Email campaigns are a great way to communicate with your entire donor base at once. This also means that they’re a great way for you to announce that you accept stock donations! Here’s some text that you can copy/paste to announce that you are now accepting stock donations:

We are pleased to announce that we now accept stock donations as well as cash donations! Stock donations are up to 37% more tax-efficient for you, our donors. They help you avoid capital gains tax on any appreciated stock, and they are fully deductible if you have owned the stock for more than one year. Plus, we are able to keep the full value of your stock donation, rather than its value after you pay capital gains tax. You can make a stock donation any time; just head to our donations to get started! Visit www.givestock.org to learn more about stock donations.

After the initial announcement, continue to include that you accept stock donations in future fundraising and marketing messages. You can use the same language in ongoing email campaigns as you do on your website; just copy/paste the above!

Send an End-of-Year Reminder

Many donors plan their major donations for the end of the year. Larger donations have even more impact when your donors switch to appreciated stock instead of cash! Plus, donors may be balancing their portfolios as they assess their tax liability for the year. Here’s some text that you can copy/paste specially for your end of year reminder:

Hello, donors! It’s that time of year again when many of us are assessing our tax liabilities, and considering charitable donations both to increase deductions and to join in the holiday spirit. This year, we hope you’ll consider donating appreciated stock instead of cash. Stock donations save you from paying capital gains tax (up to 37% of your gains), and are fully tax-deductible if you have held the stock for a year or more. We hope you’ll take advantage of this tax-efficient donation strategy, and save big on this year’s taxes!

Post on Twitter

You can also spread the news about stock donations through your social media platforms. Link to articles about stock donations from sites such as Cocatalyst, or copy and paste the following for a tweet with a link to your donation page:

Donating appreciated stock is the most tax-efficient way to donate to charity! It saves you up to 37% on your taxes, and we still get the full value of your assets. Visit www.givestock.org to learn more. 

You can get started accepting stock donations anytime! Your donors will thank you – and so will your bottom line.

Post on Instagram and Facebook

Be sure to announce your acceptance of stock donations on all of your social media platforms. Share links to your donation page, or use a fun photo! The following text works great for your Instagram and Facebook pages.

Did you know there’s a more tax-efficient way to donate to charity? Instead of cash, consider donating appreciated stock! When you donate stock, you don’t have to pay capital gains tax, saving you up to 37% while allowing the organization of your choice to keep the full value of your assets. Get started today!

Here are a few photos you can use with your post, to help your donors think about how they are nurturing their portfolios and your organization through this simple donation! These images are available for free through Creative Commons.

Include Stock Donations in Webinars 

If your organization leads webinars, we’re guessing you include a link to your donation page. Why not include a brief description of the benefits of stock donations, too? Here’s a quick blurb to include in your next webinar, along with the link to your donation page:

We hope you’ve learned something new throughout this webinar, and we also hope that you will learn more about the benefits of donating appreciated stock! This is up to 37% more tax efficient than donating cash, as it helps you bypass capital gains tax. Our organization is now accepting stock donations, which are fully tax-deductible if you have held the stock for a year or more. Visit our donations page to get started!