Winter is Coming: It’s time to safeguard your Q4 funding

Abstract: Despite our hopes of ending the pandemic, the economic outlook for nonprofits is not promising for holiday gifting this year. As we turn our view to the Q4 giving season, there are grey skies up ahead. New data suggests that consumers are concerned and Q4 fundraisers are at risk. Nonprofits that rely on end of year cash, credit cards, and event-based fundraisers need to innovate their strategies. There is a silver lining that stock gifting provides. A vast untapped source of funding is available to nonprofits that is fast, safe, and free for donors to utilize. With markets near all-time highs, stock donations offer diversification and new sources of funding at a critical time for nonprofits of all sizes. It’s time for nonprofits to safeguard their Q4 giving programs. And it only takes minutes to complete.

Donor events for fundraising is a large part of a nonprofit’s way to generate donations. The Delta variant has many questioning the prospect of large gatherings; even if permitted, many will choose to stay home. Together they raise doubts about the viability of fall fundraisers and end of year galas that many nonprofits rely upon to fund their budgets. These organizations may have stepped back from fundraising for many reasons, including disruptions to their work due to COVID-19, inability to pivot from existing channels of funding, lack of digital infrastructure, and uncertainty about donors’ willingness and ability to give. —e.g., [1] or [2,3], or [4–6]. Pitofsky, Marina (August 26. 2021). “Are crowds safe as delta variant spreads? Experts explain COVID risks at common gatherings” USA Today

Consumer sentiment fell 13.5% in August. Even more concerning is that consumer expectations fell 17.5%. This does not bode well for charitable giving. Giving Tuesday found that the average cash / credit card gifts fell 15% in its Q4 2020 study. Barring a dramatic turnaround in the spread of covid infections, it may be even worse this year. Curtin, Richard (October 2021). “Surveys of Consumers" University of Michigan

Stock gifting represents a vast source of funding. While average cash and credit donations were fading, the average stock gifts grew 30%. Since the study was conducted, the S&P 500 is up another 36%. And with an increase in capital gains taxes looming, fundraisers can expect even larger stock gifts in 2021. But despite the significant advantages of donating appreciated stock vs. cash, stock gifting is largely untapped with only 6% of donors giving stock, mostly through Donor Advised Funds. Koo, Andrew. Cipollini, Ben (May 2021) “Giving in Unprecedented Times” GivingTuesday 

While stock gifting has historically been a tedious and laborious process, donors can now submit stock donations in a matter of minutes at no cost by visiting Donatestock.com. The process of receiving and reconciling donations by nonprofits is much easier with dashboard reporting; an option to have stock gifts reconciled and converted to cash for the nonprofit. This presents an amazing opportunity for nonprofits to safeguard and boost their fundraising efforts. Soliciting stock donations can help nonprofits diversify giving programs while reducing reliance on in-person events and fundraisers. 

DonateStock enables nonprofits of all sizes to solicit, receive, and process stock donations with ease and efficiency for less than the cost of cash donations. No brokerage is required and it only takes minutes to get started. Visit today to learn how we can help you weather the coming storm.