Benefits of Donating Stock and Cryptocurrency to a Non-Profit
Donating stock or cryptocurrency to a non-profit is a highly tax-efficient way to give, allowing you to maximize your impact while reducing your tax liability. Here’s why it’s a smart choice:
1. Significant Tax Savings
- Avoid Capital Gains Tax: When you donate appreciated stocks or crypto instead of selling them first, you avoid paying capital gains tax, which can be as high as 20%.
- Receive a Full Tax Deduction: You get a charitable tax deduction for the full fair market value of the asset at the time of donation (if held for more than a year).
2. Maximize Your Donation
- By skipping capital gains taxes, more of your gift goes directly to the non-profit, allowing you to give more than if you sold the asset first and donated the cash.
- Example: If you bought stock at $5,000 and it’s now worth $10,000, donating the stock saves you from paying taxes on the $5,000 gain, while allowing the non-profit to receive the full $10,000.
3. Simple & Efficient Giving
- Many non-profits make it quick and easy to donate stocks and cryptocurrency with automated transfer options.
- No need to liquidate assets or deal with complex transactions—the non-profit handles the process directly.
4. Diversify Your Portfolio & Give Strategically
- If you have highly appreciated assets, donating some stock or crypto allows you to rebalance your portfolio while making a significant charitable impact.
- This is an ideal way to give without affecting your cash flow.
5. Greater Long-Term Impact
- Many non-profits can hold and grow assets before using them, allowing donations to stretch even further.
- Cryptocurrency donations in particular can support fast, global giving, benefiting causes around the world instantly.
Why Donate Stock & Crypto to Night Bright?
By donating stocks or cryptocurrency to Night Bright, you help fund and resource missionaries globally, while also maximizing your financial impact. Your gift enables missionaries to continue their work without reducing your liquid cash flow, and you benefit from significant tax advantages.
If you have stocks, Bitcoin, Ethereum, or other assets, consider donating directly for a smarter, tax-efficient way to give! Our automated and secure stocks and cryptocurrency payment widget is coming soon. In the meantime, please reach out to giving@nightbright.org to give today.