What is Stock Gifting and Why Nonprofits Should Care

Stock gifting is an often superior alternative to cash gifting for nonprofits because it creates tax savings for donors and larger gifts given to organizations. It's a win/win, yet only 10% of nonprofits have a brokerage account set up to receive stocks. Just as it sounds, stock gifting is the direct transfer of stock holdings rather than cash, and Infinite Giving is making the process easy and automated.

Helping donors help you.

Donating stock is the most tax efficient way to give as it helps your donors avoid paying the normal 37% tax on long term capital gains. Furthermore, 100% of the value of the donated stock can be written off for tax purposes. This means that they would only be out-of-pocket for the original price of the stock, but they would be giving the stock’s full current value and would receive a tax deduction that includes the amount normally paid towards capital gains taxes!

Stocks at a loss this year? There are still tax savings to be had for donors. The Internal Revenue Service allows taxpayers to use losses in stocks and other investments, including crypto, to offset gains. If their losses exceed their total gains for the year, donors can deduct up to $3,000 against their taxable income. Losses beyond $3,000 can be carried forward every year until death to offset gains in future years.

How it works.

With Infinite Giving, this stock gifting process is quick and simple to use, and can be just as easy as donating cash. Donors don’t need to get on the phone, manually copy a DTC, or go through any extensive process. All they have to do is click the unique stock donation link for their desired nonprofit and fill out the 7 boxes in our streamlined stock donation form, which can be seen below.

Our stock donation form requires:

·        Donor’s name

·        Donor’s email address

·        Donor’s brokerage firm

·        Stock identifier

·        Quantity of shares

·        Donation date

Our process then follows an automation flow in which the donor gets the DTC information emailed to them that they then forward to their broker. As the stock transfer request is now in writing, they are required to act immediately to complete the order. The nonprofit also gets full visibility into the process and receives the name, email, and full intent of the gift as well as another notification once the gift successfully enters their account. Infinite Giving automatically liquidates the donation upon receipt and reinvests it into a diversified portfolio of the organization's choosing.

The new fundraising tool.

The stock gifting process was complicated, manual, and time consuming - until now. It was also a practice usually reserved for only the largest and most financially sophisticated donors and organizations. However, it is our mission to make this fundraising ability available to all nonprofits and their donors. Because of that, Infinite Giving offers this stock donation ability, among other things, aat no extra charge to the nonprofits we work with. This means donors can donate to any nonprofit that is working with Infinite Giving with zero transaction fees.

Stock gifting maximizes donations and can increase fundraising contributions by up to 55%.

Let us help.

‍