Webinar Recap: Why Cash is Not King in Fundraising - The psychology and economics of noncash gifts

DonateStock hosted Dr. Russell James as he presented a very special webinar on Why Cash is Not King in Fundraising - The psychology and economics of noncash gifts.

This fascinating presentation reviewed comprehensive results from 1 million Nonprofit Tax Returns and took a deeper look at the presentation summary below.

Dr. Russell James began his presentation by explaining theories relative to fundraising, for not only large organizations, but growing ones as well. These key takeaways explore the benefits of soliciting non-cash assets:

Presentation Summary

• Asset gifts come from a larger bucket - Over 97% of wealth held by families resides in non-cash financial assets, by asking for stock donations you’re reducing the relative perception of financial loss since the gift would constitute a tiny share from assets rather than disposable income.
• Asset gifts remind donors of their wealth - Looking at a healthy stock portfolio tends to make people feel more wealthy; people that feel wealthy act more charitably.
• Asset gifts are pro-social  - Gifts of things (vs cash) are more common and emphasize communal norms thus encouraging sharing. Reminders of cash promote an aggressive/competitive market exchange mindset and actually reduces willingness to help or make donations.
•  Fundraising from asset gifts raises the technical sophistication of the organization in the donor's mind - A greater level of financial knowledge changes the relationship from one of asking to that of advising which leads to long-term fundraising growth. Donatestock provides you with the education and marketing tools to get you started.
• Appreciated asset gifts are objectively cheaper compared to cash gifts - Donors can give more at the same net cost: in addition to receiving a tax deduction for gifting they also get to avoid the capital gains tax. They may also avoid state capital gains taxes. Federal and state taxes have grown over the years making them more painful; consequently, avoiding them is more powerful.
• Irregular unearned gains (i.e. appreciated assets) generate more giving - framing a donation as an exceptional -irregular- event removes it from comparison with regular earned income budget items and thus increases giving.
• Encouraging asset gifts reflects donor-centeredness - Show you’re willing to increase your hassle (cash is easier to accept) to ultimately benefit the donor (benefits listed above). Previously, non-cash gifts were more of a hassle for nonprofits to receive and process; Donatestock now makes it fast, simple and secure while also providing dashboard reporting for donations.

Results from 1 million Nonprofits Tax returns:

Q: How can you convince your board that this is important?
A: By showing competitor noncash contributions and how much more they have raised in fundraising when raising gifts of assets.

You can start receiving donations by registering today! Feel free to share this webinar with your affiliate charities and nonprofit fundraising teams.

Earn CFRE Credit

Additionally, full participation in Why Cash is Not King in Fundraising is applicable for 1.0 points in Category 1.B – Education of the CFRE International application for initial certification and/or recertification.

Dr. Russell James is a Professor & CH Foundation Chair in Personal Financial Planning and the Director of Graduate Studies in Charitable Planning at Texas Tech University.