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As a nonprofit organization, your primary focus is likely on raising funds to support your mission and programs. While traditional forms of donations, such as cash and checks, are still important, there are other options that you should consider as well. In particular, accepting stock and cryptocurrency donations can offer a number of benefits for your nonprofit.
Bigger Gifts
One of the key advantages of accepting stock and crypto donations is that they can provide a significant financial boost to your organization. According to a study done by Dr. Russell James, nonprofits who pursue asset gifts in addition to cash gifts increase their giving by 55% over a five year period! A big part of this is they tend to be larger donations. Did you know the average online cash gift is $128 but the average stock gift is $8,000 and the average crypto gift is $10,000?
Tax Savings
Helping high capacity donors give to you via assets instead of cash is also one of the most tax efficient ways for them to give. Because stocks and cryptocurrencies often appreciate in value over time, donors can potentially make larger contributions by donating these assets rather than cash. Donors are able to avoid paying capital gains taxes which means you get a bigger gift. Additionally, donors can often claim a tax deduction for the full market value of their donated stocks or cryptocurrencies, which can incentivize them to make larger donations.
The Modern Donor
Another reason for nonprofits to accept stock and crypto donations is that they can help attract a younger, tech-savvy donor base. Many younger individuals are interested in investing in stocks and cryptocurrencies, and may be more likely to make a donation in these forms if your organization accepts them. This can help you expand your donor base and reach a new demographic of potential supporters.
Perception of Innovation
Additionally, accepting stock and crypto donations can help your organization establish itself as a forward-thinking and innovative nonprofit. In today's digital world, it's important to stay up-to-date with the latest trends and technologies, and accepting these types of donations is a great way to demonstrate that your organization is doing just that. This can help improve your image and reputation, and can ultimately lead to more support from donors and other stakeholders.
Next Steps
Of course, there are some challenges and considerations to keep in mind when accepting stock and crypto donations. For example, you will need to have the necessary infrastructure in place to handle these types of donations, and you will need to be prepared to manage the potential volatility of the stock and crypto markets. However, with the right partner like Infinite Giving, your organization can easily reap the rewards of accepting these types of donations. From brokerage account and crypto wallet openings to financial transaction and donation receipts, we automate it all.
In conclusion, there are many compelling reasons for nonprofits to consider accepting stock and crypto donations. By doing so, you can potentially raise more funds, attract a younger donor base, and establish your organization as a forward-thinking and innovative nonprofit. With the right approach, accepting these types of donations can be a valuable addition to your organization's fundraising efforts. We can help.
