Blog

Fintech Philanthropy: expanding charitable giving through stock gifting, crypto and NFTs

05/17/2022 3 minute read

The fintech sector as a whole is evolving quickly, creating new opportunities for Nonprofit fundraising. Hosted by Chapman Partnership and Miami-Dade County, panelists discussed how nonprofits can expand their donor base and grow donations through Stock Gifting and Web3. The presenters included:


Context:

  • Just as charitable giving evolved from buckets of cash and checks in the mail to online donations via credit card and paypal, new Fintech solutions are expanding the ways for donors to support causes they care about.
  • Nonprofits should offer donors multiple ways to give - those who make it easy for donors to give what they want (and how they want) stand to benefit the most in this evolving world of digital fundraising.
  • Under the stewardship of Symeria Hudson, Miami’s Chapman Partnership is leading by example by leveraging stock, crypto and NFTs to fund its mission, while hosting an event with Miami Dade County to educate the wider nonprofit community.

Key takeaways from the discussion:

  • As a fintech hotspot. Miami is well positioned to embrace new fintech solutions to help fund nonprofits. These include stock gifting, crypto and NFTs.
  • Charitable stock gifting has been around for decades but has been largely underutilized due to a lack of awareness among donors and a painstaking, manual process of executing charitable stock gifts.
  • Stock gifting has also been inaccessible to the 99% of nonprofits that do not have a brokerage account. Among larger nonprofits that have brokerage accounts, the lack of information about the origin of the stock gift and the difficulty reconciling and acknowledging charitable stock gifts has limited its growth.
  • Cryptocurrencies such as Bitcoin and Ethereum are widely known and offer great potential as currencies for charitable giving. But the lack of awareness and understanding of how to receive crypto (and what to do with it) has prevented many nonprofits from participating in the crypto craze.
  • Non-Fungible Tokens or NFTs allow the owners - and the beneficiaries of NFT gifts - to own and receive royalties on digital assets. NFTs also represent a new source of funding but are even less understood (than crypto) by the nonprofit community.
  • The good news is that all this is changing. As discussed by the panel, the barriers to fintech philanthropy are being lowered through education and intuitive digital solutions that make it easy to support nonprofits through gifts of stock, crypto and NFTs.
  • Charitable stock gifting is now fast, safe and free on Donatestock.com where donors can donate stock in minutes to 1.5 million domestic nonprofits.
  • Crypto donation processing is becoming widely accessible to nonprofits and donors through solutions offered by The Giving Block and Classy via Coinbase.
  • Proceeds from the sale of NFTs can be donated to nonprofits with help from companies such as Web3 Equity and The Hype Section.

Setting up nonprofits for stock gifting success

When you allow donors to donate stock to charity, you enable them to avoid capital gains tax on stocks—this often results in substantial savings. It also allows you to receive a larger pre-tax gift and keep the proceeds that would otherwise be paid to the IRS. When you donate stock, everyone wins. We’ve made it fast, safe and free—in less than 10 minutes, anyone can donate stock to charity (more than 1.5 million nonprofits) on our platform.

Claim your free stock gifting page in minutes and accept stock donations today.

Why donate stock to charity?

Donating stock (vs. cash) allows you to donate more and save money. When you donate stock, you avoid capital gains tax while earning a bigger tax deduction. Nonprofits also get to keep more, meaning everybody wins.
Learn more about the benefits of stock gifting and how to avoid capital gains tax on stocks.