Stock Gifts Are Just Another Way to Transfer Value

Gifts of stock are not as complicated as you might think.

Yes, there are some technical aspects. But just like every other kind of gift, it starts with knowing your donor: what they care about, what change they want to see happen, and what impact they want to make through what your organization does.

Here’s the thing: if you never talk about the option of using stock, you’re not exploring how a donor can use their wealth—their full wealth, not just their checkbook—to make a difference. And if this is something your organization has never done, you could see significant growth.

According to a recent study, organizations promoting and receiving stock gifts saw a positive 55 percent difference in growth from charities accepting just cash.

How to Ask About Stock Gifts

Always lead with what the donor wants to accomplish and ask questions to learn what your donor thinks about.

As part of that discussion, if it’s clear the donor is interested in giving, use Permission-Based Asking language to ask: “Are you open to talking about a gift to support XYZ?” If they’re interested, ask a follow-up. “We are able to accept stock as one way to give. Is that something you want to consider?”

You can explain some of the basics, such as that in addition to the charitable deduction for the current share value, there is tax savings on the appreciated value of the stock since it was bought. The same is true in gifting shares from a Mutual Fund or Exchange-Traded Fund (ETF).

Setting Up a Stock Transaction

It's ideal if you have a simple “leave behind” sheet with a few examples of the tax savings value as well as how a donor can give to your organization that way. That said, the mechanics are easy:

• Provide your donor with your organization’s legal name, EIN number, your brokerage company name and account contact information, your account name, and DTC number.
• When transfers come from a donor’s broker, oftentimes only the share information appears, and the donor is not identified. Ask the donor to apprise you of the type of stock, number of shares, broker used, and when they anticipate sending it so you can keep on top of it. You can get that through a phone conversation or email exchange. Or provide a link to an online form for the donor to fill out.
• Keep your eye out for the transaction to come through so you can promptly let the donor know it was received—as well as thank them personally.
• If it’s been longer than you expected for the gift to come through, reconnect with your donor to let them know you haven’t seen it yet. They may want to check in with their broker (I’ve personally had that happen. The donor notified their broker, and the broker did not act).

When the receipt letter is generated, it typically includes technical details—like the number of shares and the high and low value on the date the gift was received. But instead of sending it from your stock processing administrator, it should come from the Relationship Manager, who can turn a transactional document into an opportunity to strengthen the donor relationship.

Donor Conversations Are Key

Back to the conversations with donors about this. Remember, donors of any age may have appreciated stock they can give—it’s not a 60-plus age thing! Many Gen X and Millennial donors may have stock portfolios as well. (The Motley Fool reported in February 2025 that 57% invest in the stock market.)

If you shy away from these conversations thinking that it’s overly complex or too personal, remember: stock is just another way for the donor to transfer what they value.

Always start there. Focus on where a donor’s interests and passions intersect with your organization’s work—and how that connection allows them to invest in meaningful change that genuinely brings them joy.

It’s really that simple.