High-Growth Fundraising the Silicon Valley Way

5Deep Dive into Stock Donations

Charitable organizations have successfully focused fundraising efforts on cash giving for decades. Their loyal and passionate donors have followed suit with 80% of charitable donations coming in the form of cash (Axelrad, 2018).

But it's time to start reimagining the future of philanthropy. Although 80% of charitable donations are made in cash, or from donors’ checking and savings account, US households hold only 10% of their overall wealth in these accounts (Axelrad, 2018). The periodic run-ups in the US stock market, the democratization of retail stock trading and the increase in capital gain tax rates have donors evaluating new ways to give.

The nonprofit organizations that adopt and pioneer stock donations will be best positioned to tap into the most underused fundraising asset. Nonprofits should be empowered to develop new processes and strategies to capitalize on stock giving to supplement their existing cash fundraising efforts. To maximize the potential, it is critical to understand the macro-level dynamics driving the necessary shift to noncash fundraising.

What Is Driving the Need to Support Stock Donations at Scale?

There are two primary drivers prompting nonprofits to focus on capturing the next generation of charitable giving:

• Significant donor wealth is held in liquid noncash assets, including stocks.
• Stock giving is the most tax-efficient way for donors to express generosity.

Noncash Assets Are the Next Donation Channel for ...