Why Smart Donors Are Giving Stock, Not Cash

Cash is great—but it’s not always the smartest way to give.

Founders and business owners who hold valuable equity can make a far greater impact by donating shares before a sale. It’s the most tax-efficient way to give—and it often results in a bigger gift than anyone expected.

Let’s break it down.

The Stock vs. Cash Difference

Here’s what happens when a founder sells their company and then donates cash:

❌ They pay capital gains taxes (up to 23.8%)
❌ Their donation is smaller after taxes
❌ The nonprofit gets what’s left over

But when they donate equity before the sale:

✅ They avoid capital gains entirely
✅ They deduct the full fair market value
✅ The nonprofit receives the full pre-tax value

Example:
A donor holds startup stock worth $1M.
If they sell, they pay ~$238k in taxes and donate $762k.
If they donate the stock instead, you get the full $1M—and they still get the write-off.

It’s Not Just for Tech Billionaires

Anyone holding private equity or startup shares can give—founders, early employees, investors, even local business owners with LLC interests.

This isn’t about ultra-wealth. It’s about unlocking assets they already have.

And now, it’s easier than ever.

How It Works with Donate Equity

We built a platform that simplifies the entire process:

• Drafts the equity agreement

• Coordinates with your donor’s company

• Handles compliance, appraisals, and forms

• Notifies you when the deal is done

Deals can close in 3–5 days. No legal lift for your team. Just real support from real humans.

The Takeaway

Smart donors don’t wait to give.
They give from the asset that’s grown the most—and costs them the least.

And when they do, your nonprofit wins big.