Tax Season Is Your Nonprofit's Prime Opportunity

Why Non-Cash Donations Matter More Than Ever

As tax season approaches, millions of Americans are reviewing their finances and thinking about ways to lower their future tax bill. For nonprofits, this creates a narrow but powerful window of opportunity — one that most organizations are missing entirely.

While donors are thinking about taxes, forward-thinking development officers should be asking themselves: Are we making it as easy as possible for donors to give in the most tax-efficient way? If so, how well are we informing our donors? The answer, increasingly, lies in their approach to non-cash donations.

The Data Tells a Compelling Story

Recent analysis of DonateStock data¹ reveals some striking trends:

1. Donors of appreciated securities make significantly larger gifts — an average of 6x larger than cash gifts
2. These aren't casual supporters; they're engaged philanthropists who give 2x more frequently than cash donors
3. These donors have much higher retention rates – more than double the national average
4. Repeat donors give more over time. Last year they gave 55% more on average

This isn't coincidence — it's evidence that organizations providing a seamless non-cash giving experience build stronger, more valuable donor relationships

¹Comparison of DonateStock 2024-2025 anonymized data with Vanguard Charitable Donor Survey, and Giving USA reporting.

Why Tax Season Amplifies the Opportunity

Tax season creates a window of opportunity for charitable giving. As donors are contemplating ways to reduce future taxes, it’s the perfect time to introduce new tax-advantaged ways to give.

This is when the conversation shifts from "should I give?" to "how can I give most efficiently?"

A growing number of donors have appreciated stocks and mutual funds or Crypto — but most are unaware of the unique tax advantages of donating these assets instead of cash. By gifting appreciated assets to charity, all donors may avoid capital gains tax. Those that itemize can also deduct the fair-market-value of the appreciated asset.

But here's the critical insight: donors are much more likely to take advantage of this strategy if you make it easy for them.

Making It Easy Is Non-Negotiable

The donors who gift stock aren't more generous than your other supporters—they're just better informed. Most donors support multiple organizations each year, which means efficiency isn't just a nice-to-have; it's essential. A cumbersome donation process doesn't just frustrate donors; it actively redirects their giving to organizations that have removed the friction.

The good news: accepting stock donations has never been simpler. DonateStock has eliminated the friction and created an effortless process:

• Our Easy Button enables donors to gift stock in minutes. (Read this donor’s story)
• We remove the manual work of processing, reconciling and acknowledging gifts
• We enable fundraisers with strategy and content to educate donors on the unique benefits of stock gifting (See Shriner's Children's)
• We provide live support to donors and nonprofits to ensure the success of each gift

"A cumbersome donation process doesn't just frustrate donors; it actively redirects their giving to organizations that have removed the friction."

The Tax Season Action Plan

If your nonprofit isn't actively promoting non-cash giving options during tax season, here's how to start:

Immediate steps:

1. Make “Ways to Give” easy to find on your website. It should be prominent in the navigation menu with links placed on your home page and at the top of your Donate page
2. Showcase "Ways to Give" by featuring stock, DAF, crypto (and other ways) prominently on your Ways to Give page
3. Incorporate "Ways to Give" language in your donor communications
4. Consider sending a Tax Season email that explains the benefits of donating stocks, mutual funds, crypto, and from their DAF

Strategic priorities:

• Seek ways to educate donors on tax-advantaged ways to support your mission
• Create simple, one-page guides explaining the process – we’ll provide the content
• Train development staff to confidently discuss non-cash giving – we’ll provide the training

The Bottom Line

The opportunity for nonprofits is clear: The donors are there. The assets are there. The tax incentives are compelling. The only question is whether your organization is positioned to capture this opportunity — or whether these high-value gifts flow to nonprofits that have made non-cash giving a strategic priority.

Tax season isn't just about donor deadlines. It's about making your nonprofit the obvious choice for sophisticated donors who want their generosity to go further. The data proves that when you meet donors where they are with seamless non-cash giving options, everyone wins. Donors save more, give more, and stay engaged longer — while your organization builds a more sustainable, high-value donor base.

The window is open. Are you ready?

This data in this article is based on anonymized donation activity across the DonateStock platform from Q1 2024 through Q4 2025, examining patterns in donor behavior, nonprofit engagement, and identifying trends in non-cash giving, when compared against Vanguard Charitable and Giving USA data.