Non-Cash Asset Fundraising: Stock, Crypto, DAFs, and Planned Giving

Sixty percent of wealth in America is held in non-cash assets: stock, real estate, cryptocurrency, business interests. Yet most nonprofits only ask for cash. This means you're ignoring approximately $15 trillion in potential donor wealth.

Non-cash asset fundraising isn't complicated. But it requires you to build infrastructure, understand tax implications, and actively market these options. Organizations that do get 20-40% of major gifts in non-cash form.

Why Non-Cash Assets Matter

A donor with $100,000 in company stock that's appreciated $50,000 faces a choice: sell the stock and donate $100,000 in cash (but pay capital gains tax on $50,000 = $7,500 tax bill, leaving only $92,500 to give), or donate the stock directly (no capital gains tax, full $100,000 value benefits the nonprofit, donor gets tax deduction for $100,000).

For the donor: They give more, pay less tax, and feel better. For the nonprofit: You get more money. This is a win-win that most nonprofits leave on the table by never asking.

Accepting Stock Gifts

The Basics When a donor gifts appreciated stock, two things happen: (1) They get a charitable tax deduction for the fair market value, (2) You avoid capital gains tax, (3) You immediately sell the stock and take the cash. Simple.

The Process 1. Donor and nonprofit agree on gifting the stock 2. Donor contacts their brokerage and initiates a transfer to your nonprofit's brokerage account 3. Stock arrives in your account 4. You immediately sell it and take the cash 5. You send the donor a receipt for tax deduction purposes

You'll need a brokerage account. Fidelity, Schwab, and Vanguard all offer nonprofit accounts. The setup takes 2-3 weeks. The cost is minimal (often free for nonprofits).

Marketing Stock Gifts Most donors don't know they can gift stock. You need to tell them. On your donation page, include: "Have appreciated stock? You can donate it and avoid capital gains tax. Contact [person] to arrange."

Train your board and major donor relationships: "If someone mentions they have appreciated stock, this is a gift opportunity."

Include stock giving in your planned giving materials. "Stock gifts avoid capital gains tax and provide an immediate tax deduction."

Cryptocurrency Giving

Crypto is the new frontier of non-cash fundraising. A donor who bought Bitcoin at $10,000 and it's now worth $60,000 faces capital gains tax. If they donate the Bitcoin directly to your nonprofit, they avoid all capital gains tax and get a tax deduction for $60,000.

The Mechanics The donor transfers crypto directly to your nonprofit's wallet. You immediately convert it to cash through a crypto exchange (Coinbase Commerce, The Giving Block, or others). Done.

The Challenge Price volatility. Bitcoin might be worth $60,000 one day and $55,000 the next. You need a platform that handles the conversion quickly. The Giving Block is popular because they handle crypto acceptance and conversion for nonprofits.

Regulatory Landscape Crypto giving is increasingly regulated. Requirements vary by state and are evolving. Work with your CPA or tax attorney. But it's legitimate and tax-advantaged for both donor and nonprofit.

Donor-Advised Funds (DAFs)

DAFs are a powerful vehicle. A donor establishes a DAF, contributes appreciated stock or cash, gets an immediate tax deduction, then recommends distributions to nonprofits over time.

Why donors love DAFs: They get a big tax deduction immediately. They can distribute to charities over years (tax planning flexibility). They can involve their family in giving decisions.

Marketing to DAF Holders Schwab Charitable, Fidelity Charitable, and others manage $500B+ in DAFs. These donors are already committed to giving; they just haven't committed to who they're giving to yet.

Your pitch: "If you have a Donor-Advised Fund, we'd welcome your support. Here's what we're working on that aligns with your values..."

DAF donors are ideal targets for relationship-first fundraising. They're vetted, committed, financially sophisticated donors. Ask them to lunch. Show them your work. Make the case.

The Opportunity An estimated $100B+ sits in DAFs uninvested annually. Someone's DAF could be your next $50,000 gift. You just need to ask.

Planned Giving Basics

Planned giving is not just wills. It's a spectrum of instruments that let donors support you while meeting their financial goals:

Bequests (Wills) "I leave $50,000 to the nonprofit in my will." The most common planned gift. Costs donors nothing until they die. Gives them a sense of legacy.

Process: You ask donors if they've included you in their will. Most haven't thought about it. A simple conversation: "If you're deciding where your legacy goes, would you consider us?" Many will say yes.

Cost to donor: Nothing during lifetime. Simple to include in a will (lawyer adds it in 5 minutes).

Charitable Remainder Trusts (CRTs) A donor transfers assets into a trust, receives income from the trust for life, then the remainder goes to the nonprofit. It's tax-advantaged wealth planning for the donor.

Example: A 70-year-old transfers appreciated stock worth $500,000 to a CRT. The trust pays them $30,000/year for life. When they die, $500,000 goes to the nonprofit. The donor gets a charitable tax deduction, avoids capital gains tax, and has secure income.

This requires legal structuring. But for major donors (especially those with appreciated assets), it's powerful.

Charitable Gift Annuities (CGAs) Similar to CRTs but simpler. A donor gives the nonprofit $100,000. In exchange, they receive a fixed income stream for life. The remainder goes to the nonprofit.

It's like creating an annuity with the nonprofit. Donors love the income security. Nonprofits love the eventual asset.

Donor-Advised Funds (Covered Above) The most flexible vehicle. A donor contributes, gets the deduction, then recommends distributions over time.

Building Planned Giving Infrastructure

You Need: 1. A planned giving statement on your website explaining options 2. One staff person (even part-time) owning planned giving 3. A lawyer and CPA partnership for CRT/CGA structuring 4. Planned giving marketing (simple pamphlet, annual letter to major donors) 5. Bequests language on your website: "Remember [Nonprofit] in your will"

The Pitch Don't wait for major donors to bring up planned giving. You bring it up. "Many of our supporters include us in their long-term plans through bequests or charitable trusts. Would that interest you?"

Most major donors will say: "I hadn't thought about it." That's the opening. You've planted a seed. They'll think about it, and some percentage will move forward.

The Revenue Math

Assume you have 50 major donors (gifts $5,000+). If 20% include a bequest in their will (average value $75,000), that's 10 donors × $75,000 = $750,000 future revenue.

Add 3-5 stock gifts annually from existing donors (average $25,000 each) = $75,000-$125,000 in annual revenue.

Add crypto gifts, DAF recommendations, and planned giving, and non-cash asset fundraising becomes 15-25% of major donor revenue. This isn't new money; it's existing wealth accessed better.

Common Mistakes

Not Having Brokerage Account Set Up A donor offers stock, you say yes, then you don't know how to accept it. By the time you set up an account, they've lost interest. Have the account open before you need it.

Failing to Educate Donors Most donors don't know they can gift stock or crypto. If you don't tell them, they won't offer. Market these options. Put them on your website. Mention them in major donor conversations.

Ignoring DAF Donors There are thousands of DAF holders in your community. Some probably follow your work. A simple campaign: "If you have a DAF, we'd love your support. Here's what we've accomplished..." will generate donations.

Making Planned Giving Too Complex Donors don't understand CRTs and CGAs. Keep it simple: "We accept bequests. You can include us in your will with one sentence. Contact us for language to give your attorney."