The Nonprofit’s Quick Guide to Equity Gifts (And Why They’re Easier Than You Think)

Equity donations used to feel like rocket science. Private shares? Appraisals? IRS forms?

Not anymore.

If your nonprofit serves business owners or startup founders, equity gifts are one of the easiest—and most overlooked—ways to unlock major funding.

What’s an Equity Gift?

It’s when a business owner donates shares of their company before a sale.

These might be private shares in a startup, local business, or growth-stage company. Instead of writing a check, the donor gifts stock—often in just a few days.

Why Would a Donor Do This?

Because it’s a win-win:

✅ No capital gains tax (saving up to 23.8%)
✅ Full fair market value tax deduction
✅ Larger gift size than cash post-sale

And for your nonprofit? It means more value—and more flexibility.

What If You Need Cash Now?

You don’t have to sit on the stock or figure out how to sell it.

With a donor-advised fund (DAF), the donor gives equity today and the DAF handles everything—sale, conversion, and cash distribution. Your nonprofit receives a grant when liquidity hits.

That means no stock-handling, no risk, no stress.

How Hard Is It to Accept?

Not hard at all—when you have the right partner.

Donate Equity automates everything:

• Equity gift agreements

• Appraisals and valuations

• Required IRS forms

• Notifications when the deal is done

You don’t need a legal team. You don’t need a finance committee. You just need the confidence to say: “Yes, we accept equity.”

Takeaway

Equity gifts aren’t just for billion-dollar nonprofits.

With the right tools, any organization can unlock funding from founders, early employees, and business owners in their network.

✅ Simple
✅ Fast
✅ Legal + compliant