Gifts of stock to charities

When I teach fundraising classes for Fundraising Institute Australia and others, I often times draw distinctions in fundraising in the UK, US, and Australia. One distinction I draw is the difference in direct marketing and major gifts fundraising between the US and their UK and Australian counterparts. Perhaps an over generalisation, but direct marketing is much stronger, particularly regular giving programs, in the UK and Australia than in the US. And, major gifts are far stronger in the US than in the UK and Australia.

Snip20151125_1Take this email I received from Dana-Farber and The Jimmy Fund as an example. The email suggests I consider a gift of stock at year-end. Gifts of stock are a popular means for US major donors to give due to their appreciation and tax benefits. US non-profit organisations and charities actively seek gifts of stock from their prospective donors throughout the year and, in particular at year-end.

I received a second request this week for gifts of stock. This one is from Florida State University (FSU). FSU points out the tax benefits of making this type of gift.Snip20151126_2

Australian charities may take a page from the US nonprofit playbook. Think about prospective donors who have an affiliation with your nonprofit organisation and who may have appreciated stock. Perhaps these prospective donors are employees of US corporations and part of their compensation package includes securities.