Nonprofit Stock Donation Process to Increase Gifts

Accepting gifts of appreciated securities can be one of the most effective ways for nonprofits to grow major gifts, deepen donor relationships, and increase net fundraising revenue. Yet many organizations leave this opportunity untapped because the process feels technical, risky, or reserved for large institutions.

It does not have to be.

With the right policies, partners, staff training, and donor communications, even small and midsize nonprofits can create a smooth stock donation process that removes friction for supporters and makes high-impact giving easier.

This guide walks through how nonprofit professionals can build a practical, donor-friendly process for accepting stock gifts and other appreciated securities.

Why stock donations matter for nonprofit fundraising

When donors give appreciated stock they have held for more than one year, they may be able to avoid capital gains tax while also claiming a charitable deduction for the fair market value of the security, subject to IRS rules and their tax situation. That can make stock gifts more tax-efficient than cash gifts for donors with appreciated assets.

For nonprofits, that efficiency can translate into:

• Larger average gift sizes
• New major gift conversations
• End-of-year giving opportunities
• Stronger relationships with financially sophisticated donors
• Increased support from board members and long-time supporters

According to the IRS, donors and charities must follow specific rules for substantiation and valuation, especially for non-cash gifts. Nonprofits should understand the basics and encourage donors to consult tax advisors. The IRS provides helpful guidance on charitable contributions at IRS.gov.

What counts as appreciated securities?

In many nonprofit fundraising conversations, “stock gifts” is shorthand for a broader category of marketable assets.

Common examples

Your organization may receive:

• Publicly traded stocks
• Mutual fund shares
• Exchange-traded funds (ETFs)
• Corporate bonds
• Treasury securities

Less common examples

Some donors may ask about:

• Closely held stock
• Restricted stock
• Stock options
• Cryptocurrency
• Partnership or LLC interests

Publicly traded securities are usually the easiest place to start because they are more straightforward to transfer, value, and liquidate. Closely held or more complex assets often require additional due diligence, legal review, and gift acceptance policies.

The biggest reason nonprofits miss stock gifts: friction

Many donors are willing to give stock, but the process often breaks down because the organization is unprepared.

Common barriers include:

• No brokerage account set up for incoming transfers
• Unclear website instructions n- Slow response from staff when a donor asks how to give
• No internal coordination between development and finance
• Missing gift acceptance policies
• No acknowledgement process tailored to non-cash gifts

If a donor has to chase down wiring details, wait days for an answer, or explain the process to your team, the gift becomes harder than it should be. In some cases, the donor gives cash instead. In others, the gift does not happen at all.

A strong stock donation process is really a donor experience strategy.

Step 1: Create a gift acceptance policy

Before promoting stock gifts, establish a board-approved gift acceptance policy. This document helps your team make consistent decisions and reduces risk.

What to include

Your policy should address:

• Which types of securities you accept
• Whether you automatically sell marketable securities upon receipt
• Who is authorized to approve exceptions
• How complex assets are reviewed
• What legal, tax, and financial advisors are consulted when needed
• Whether the organization will accept restricted or illiquid securities
• A disclaimer that the nonprofit does not provide tax or legal advice

Many nonprofits choose to liquidate publicly traded securities as soon as practical after receipt to avoid market volatility and simplify accounting. If your organization plans to hold securities, that should be clearly addressed in policy and aligned with your investment strategy.

Step 2: Open the right brokerage account

To receive stock gifts, your nonprofit typically needs a brokerage account in the organization’s legal name.

Choose a brokerage partner carefully

Look for a provider that offers:

• Experience working with nonprofit organizations
• Reliable support for inbound transfers
• Clear reporting and statements
• Low or reasonable transaction costs
• Straightforward online access for finance staff
• Compatibility with your accounting workflow

Your finance team, outsourced accounting partner, or treasurer can help evaluate options. Development leaders should also be involved, because donor service matters just as much as the back-office mechanics.

Gather the transfer details donors need

Once your account is active, prepare a one-page stock transfer instruction sheet that includes:

• Legal name of the nonprofit
• Tax ID / EIN
• Brokerage firm name
• DTC number
• Account number
• Account registration name
• Contact information for your finance and development staff
• Instructions asking the donor or advisor to notify you before transfer

That last point is essential. Many transfers arrive without donor identification, making timely acknowledgment difficult.

Step 3: Build an internal workflow between development and finance

A stock donation process succeeds when development and finance work from the same playbook.

Define responsibilities clearly

Development should typically own:

• Donor education and outreach
• Responding to inquiries
• Coordinating with donor advisors when appropriate
• Stewardship and acknowledgment
• CRM documentation

Finance should typically own:

• Brokerage account administration
• Confirming receipt of shares
• Recording the gift according to accounting standards
• Managing liquidation
• Providing documentation needed for acknowledgments and audits

Use a simple stock gift checklist

A practical workflow might look like this:

1. Donor asks how to make a stock gift.
2. Staff sends transfer instructions within one business day.
3. Donor is asked to complete a notification form or email key details:
   • Donor name
   • Broker name
   • Security name or ticker
   • Number of shares
   • Intended designation or campaign
   • Expected transfer date
4. Finance monitors the brokerage account for the transfer.
5. Upon receipt, finance records the date and details.
6. Securities are sold according to policy.
7. Development sends a compliant thank-you and stewardship follow-up.
8. Gift is entered into the donor database with notes for future cultivation.

This level of coordination improves both compliance and donor experience.

Step 4: Publish donor-friendly instructions on your website

If a donor is motivated to give appreciated stock, your website should make it easy.

What to include on the page

Your stock donation webpage should include:

• A short explanation of why donating stock can be tax-smart
• The types of securities you currently accept
• A reminder to consult a tax advisor
• Downloadable or copyable transfer instructions
• A contact person for assistance
• A secure form or email for advance notification

Keep the language plain. Most donors do not need a long technical explanation. They need confidence that your organization is ready.

You can also mention broader digital fundraising capabilities on pages that support donor journeys, such as your features or pricing pages, especially if you are evaluating systems that centralize donor communication and campaign tracking.

Step 5: Train frontline staff to recognize stock gift opportunities

A stock gift process is only useful if your team knows when to mention it.

Staff and volunteer audiences to train

Consider training:

• Major gift officers
• Executive leadership
• Board members
• Annual fund staff
• Development operations staff
• Gift processors

Situations where stock gifts may be appropriate

Your team should listen for clues such as:

• “I want to make a larger gift this year.”
• “Most of my wealth is in investments.”
• “I am trying not to sell right now because of taxes.”
• “I usually donate from my brokerage account.”
• “I had a really strong year in the market.”

A simple prompt can open the door: “If it is helpful, we can also accept gifts of appreciated stock, which may offer tax advantages for some donors.”

That is informative without being pushy or offering tax advice.

Step 6: Market stock giving before key fundraising moments

Do not wait for donors to ask. Promote stock giving strategically throughout the year.

Best times to mention appreciated securities

Stock donation messaging is often effective:

• At year-end, especially in November and December
• Before capital campaign asks
• During major donor conversations
• Around board giving efforts
• During periods of strong market performance
• In tax-season educational communications

Channels to use

You do not need an elaborate campaign. Start with:

• A website giving page section
• One dedicated stock gift page
• A year-end email to loyal donors
• A short note in a donor newsletter
• Board talking points
• Personalized outreach from gift officers

Example message

“Did you know you may be able to make a larger gift by donating appreciated stock instead of cash? Giving long-term appreciated securities may help you avoid capital gains taxes while supporting our mission. Contact us for easy transfer instructions.”

This kind of language is direct, educational, and donor-centered.

Step 7: Acknowledge stock gifts correctly

Acknowledgment for securities gifts requires care.

What your receipt should include

In general, your acknowledgment should include:

• The nonprofit’s name
• The date of the contribution
• A description of the property received, such as the name of the stock and number of shares
• A statement that no goods or services were provided, if applicable

What not to include

Do not state the dollar value of the stock gift in the donor receipt. For non-cash contributions, it is generally the donor’s responsibility to determine the value for tax reporting purposes, subject to IRS rules.

Your internal records may assign a value for accounting and campaign reporting, but the donor acknowledgment should follow substantiation rules. For more detail, charities can review IRS guidance and consult their auditors or legal counsel.

Step 8: Record and reconcile stock gifts accurately

Accounting for securities gifts can be more nuanced than cash gifts.

Important data points to track

Your organization should capture:

• Date received
• Date sold
• Security name and ticker
• Number of shares received
• Average or fair market value on date of receipt, based on your accounting policy
• Net proceeds after sale
• Donor designation and restrictions, if any

Because market prices change daily, finance and development need shared definitions for “gift date,” valuation method, and campaign crediting.

Avoid common reconciliation issues

Problems often arise when:

• Development books the gift based on sale proceeds rather than receipt value
• Finance and fundraising use different dates
• Donor identity is missing
• Gifts are credited to the wrong fund or campaign

A short documented procedure can prevent all of these.

Step 9: Steward stock donors like major donors

A donor who gives appreciated securities is often making a thoughtful, planned, and financially significant contribution. Treat that gift accordingly.

Strong stewardship practices

After the acknowledgment, consider:

• A personal thank-you call from a staff leader or board member
• A follow-up message about the impact of the gift
• A note that mentions the ease and professionalism of the process
• An invitation to discuss future giving options
• Segmentation in your CRM for future outreach about tax-smart giving

These donors may also be strong prospects for:

• Multi-year commitments
• Donor-advised fund giving
• Qualified charitable distributions, if age-eligible
• Bequests or other planned gifts
• Leadership annual giving

Stock gifts are rarely just transactions. They are relationship signals.

Step 10: Measure and improve your results

Once your process is live, track outcomes and refine the experience.

Metrics worth monitoring

Measure:

• Number of stock gift inquiries
• Number of completed stock gifts
• Average stock gift size
• Total revenue from appreciated securities
• Time from inquiry to completion
• Percentage of unidentified transfers
• Repeat stock donors

Questions to ask after each gift

Debrief internally:

• Did the donor receive instructions quickly?
• Did we know the transfer was coming?
• Was the donor properly thanked?
• Was the gift recorded accurately?
• Did any step create avoidable delays?

This feedback loop can help a small process become a scalable fundraising channel.

Practical example: how a midsize nonprofit could implement this in 30 days

Imagine a human services nonprofit with a $3 million annual budget. It has loyal donors, several board members with professional backgrounds in finance, and no current ability to accept stock gifts.

A realistic first-month implementation plan could look like this:

Week 1

• Finance selects a brokerage firm and starts account setup.
• Development drafts website copy and donor instructions.
• Leadership reviews or updates the gift acceptance policy.

Week 2

• Brokerage account is activated.
• Staff creates a stock gift notification form.
• Finance and development agree on the internal checklist.

Week 3

• Website page goes live.
• Major gift officers and board members receive a short training.
• CRM fields are added for securities gifts.

Week 4

• Year-end email includes a short tax-smart giving message.
• Top 25 donors receive personalized outreach.
• Staff tests the acknowledgement and reconciliation process.

That organization does not need a dedicated planned giving department to get started. It needs readiness, clarity, and follow-through.

Common mistakes nonprofits should avoid

Even well-intentioned teams can make preventable errors.

Mistake 1: Waiting until a donor asks

If your process is not ready when the donor is ready, you may lose the gift.

Mistake 2: Making the instructions too hard to find

If stock transfer information is buried or only available by request, donors may stop trying.

Mistake 3: Failing to coordinate internally

Development and finance must agree on workflow, valuation, and responsibilities.

Mistake 4: Giving tax advice

Educate donors about possibilities, but always direct them to professional advisors for personal tax guidance.

Mistake 5: Treating stock gifts like a back-office task only

The process matters, but so do cultivation, messaging, and stewardship.

How technology supports a better stock donation process

While the securities transfer itself usually occurs through a brokerage channel, your fundraising platform still plays a critical role.

The right nonprofit technology helps you:

• Track stock gift prospects in your CRM
• Document donor intent and designations
• Automate follow-up tasks and stewardship touches
• Report on non-cash fundraising performance
• Coordinate activity across development and finance
• Support segmented outreach about tax-smart giving opportunities

That is where operational visibility matters. If your team is juggling spreadsheets, inboxes, and disconnected systems, stock gifts can easily fall through the cracks.

Conclusion

A strong nonprofit stock donation process can unlock larger gifts, improve donor satisfaction, and diversify your fundraising strategy. The key is not complexity. It is readiness.

Start with the essentials: a gift acceptance policy, a brokerage account, clear donor instructions, a documented workflow, and thoughtful stewardship. Once those pieces are in place, you can confidently invite supporters to give appreciated securities and make it easy for them to do so.

If you are looking for a better way to manage donor relationships, campaign activity, and fundraising operations around opportunities like stock gifts, try GiveRise. Explore how GiveRise can help your team streamline donor management, strengthen stewardship, and grow smarter fundraising.