Why Waiting for the Sale Might Be Costing Your Nonprofit Millions

Most nonprofits think major gifts happen after a business is sold. But if you’re waiting until a founder tells you they exited… you might already be too late.

The reality? The best time for a donor to give equity is before the sale.

And that’s exactly what most organizations miss.

What Happens When You Wait

When a founder sells their company and then donates, they’ve already:

• Triggered capital gains tax (up to 23.8%)

• Lost the opportunity for a full-value charitable deduction

• Reduced the size of the potential gift

In contrast, when they donate shares before the sale:

• They avoid capital gains entirely

• They can deduct the full fair market value

• Their gift can be 30–40% larger than if they gave after taxes

Why Most Nonprofits Miss Out

Because they don’t know when or how to ask.

Founders are busy. And if you’re waiting for them to bring it up, you’ll only hear about it once the deal is done—and your chance to unlock that value has passed.

The good news? You don’t need a finance degree or legal team to start the conversation. You just need this question:

🗣️ “Would you ever consider donating a small portion of your equity before a sale to fund something meaningful?”

That simple ask can open the door to transformational giving.

But Isn’t It Complicated?

It used to be. Today, platforms like Donate Equity make the process simple and fast. You get:

• A built-in playbook

• Real humans guiding the process

• No legal team required on your end

Deals can close in 3–5 days. You focus on impact—we handle the paperwork.

The Takeaway

You’ve already built relationships with founders. Don’t let timing be the thing that holds your fundraising back.

✅ Founders save big on taxes
✅ You receive more valuable gifts
✅ The community gets funded sooner

👉 Start the conversation before they sell. [Here’s the question to ask →]