Why (and How) Your Nonprofit Should Solicit Stock Donations

This week on the Nonprofit Jenni Show, we chat Jonathan Delshad, CEO of Stock Donator, about why nonprofits should solicit and accept donations of stock.

How Stock Donator Works

Stock Donator is a tool nonprofits can use to solicit and accept stock donations. Nonprofits can sign up for a free account to start accepting stock donations through their website and through traditional donation forms. When a donor wants to give a gift of stock, Stock Donator handles the entire process of converting the stock into cash, charging a minimal transaction fee for these services.

Why Nonprofits Should Solicit Stock Donations

Jonathan shares a few key reasons nonprofits should ask their donors for gifts of stock:

1. Donors often look for places to donate stock. If your nonprofit is unwilling to accept a stock donation, the donor will simply find another nonprofit that can accept it. This is because donors can avoid paying a capital gains tax for selling the stock while still receiving tax deduction benefits for their donation.

2. Nonprofits lose revenue opportunities when they don’t solicit stock donations. Bloomerang reports that nonprofits which promote opportunities to donate stock recognize a positive 55% difference in growth compared with nonprofits which only accept cash donations.

3. Donors can often afford to donate more when they give stocks compared with cash. Because donors can transfer stock to your nonprofit without having to remove money from their household budget, they can often afford to give in larger amounts through stock gifts.

Additionally, Jonathan points out that, thanks to new investing apps and robo-investors, stocks have become popular among people in every age group.

Your nonprofit can start soliciting stock donations with Stock Donator’s free Guide to Soliciting Stocks.

Listen to the Full Episode

Listen to my full conversation with Jonathan to learn more about stock donations:

Jenni’s Favorite Resources This Week

Every week on my blog, I collect my top favorite resources for nonprofits to check out! Many of these relate to the topics covered on the podcast that week, but they’re great to check out any time: