How Nonprofits Can Partner with Foundations to Accept Equity Gifts

Equity gifts might sound out of reach. Legal fees? Valuations? Stock transfers? Most nonprofits assume they’re too complex.

But with the right partner—like your local foundation—you don’t have to figure it out alone.

Foundations across the country are stepping in to help nonprofits like yours unlock early-stage equity gifts from business owners. And it might be the easiest way to secure your next major donation.

The Opportunity: Equity Before the Exit

Donors who own businesses or startup stock often want to give—but they wait until after a liquidity event (like an acquisition or IPO).

The problem? By then:

• Capital gains taxes kick in

• Their donation gets smaller

• You miss out on the full potential of their gift

But when equity is donated before a sale:

• The donor pays zero capital gains

• They get a full-value tax deduction

• You can receive a much larger donation

This is how nonprofits unlock gifts worth 30–40% more—just by starting the conversation earlier.

How Foundations Can Help

You don’t need a legal team or financial advisors. Your local foundation may already offer:

• A donor-advised fund (DAF) that can accept private stock

• Gift acceptance infrastructure that handles the sale and sends your nonprofit the cash

• Education and templates to guide donor conversations

Some even partner with platforms like Donate Equity to automate the process. That means you don’t need to do anything technical—they handle the documents, timing, and communication.

What You Can Do Today

1. Talk to your local foundation. Ask: “Can you help us accept an equity gift through a DAF?”

2. Identify donors with private business ownership. Startup founders, local entrepreneurs, investors.

3. Use the right question:
   🗣️ “Would you consider donating a small portion of your equity before a sale to support our work?”

The Takeaway

You don’t need to go it alone.
Foundations are built to support nonprofits—and that includes unlocking gifts you didn’t know were possible.

• Bigger gifts

• No legal overhead

• Real donor impact—before the sale

👉 Ask your foundation how they can help you accept equity gifts. Or connect with Donate Equity today.