By Jennifer Liu-Cooper

Last week’s Tip Tuesday gave you the characteristics of a typical stock gift prospect.  This week, learn how to successfully process stock gifts.

What Donors Need to Make a Stock Gift

Through good marketing and direct conversations, you will motivate and guide your donors in stock giving. To make a stock gift, donors will need:

  • Their broker’s charitable gift transfer/letter of authorization form.* 
  • The nonprofit organization’s brokerage name, Depository Trust Company (DTC) number, and account number.

*Some brokerages give donors the option to sign and submit a transfer request electronically, while others require donors to mail in their transfer requests.

How To Process Stock Gifts in Four Steps

  1. Open a brokerage account. The most common brokerage accounts for nonprofits are with Charles Schwab and Fidelity Charitable.

  2. Monitor the account daily for new gifts. When a new gift comes in, you need to record the gift value of donated shares, so you can send an accurate tax receipt and thank you letter.

  3. Sell the shares the same day. Many nonprofits prefer to sell immediately to avoid market risk and accounting discrepancies between the donated value and the actual cash proceeds.

    NOTE: Not knowing the identity of the donor will cause unnecessary delays in both the sale of the stock and acknowledgment of the donor’s gift.

  4. Send an acknowledgment letter to the donor. This may be required if the gift is over a certain amount, and should include the stock’s ticker symbol, the number of shares, and the date of the donation.  OF COURSE, when you promptly thank any donor, you are encouraging future generosity.
What Brokerages Do for Nonprofits Receiving Stock Gifts
Ask stock donors to tell you their intentions

Follow these steps to ensure steady growth in stock giving to your nonprofit.

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FOUR STEPS FOR SUCCESSFUL STOCK GIFT PROCESSING