The Benefits of Securities and How to Market Them
Gifts of securities, such as stocks and bonds, offer a multitude of advantages to donors, making them an attractive option for philanthropy. Not only do these gifts provide significant tax benefits, but they also allow donors to contribute in a way that can be more impactful than cash donations. Here are some key advantages and effective marketing strategies to promote gifts of securities.
Advantages of Gifts of Securities
1) Tax Benefits
One of the primary advantages of donating securities is the significant tax benefits. When donors give appreciated securities directly to a charity, they can avoid paying capital gains tax on the appreciation. This means that the charity receives the full market value of the securities, and the donor is able to deduct the entire fair market value of the gift from their taxable income, providing a double tax benefit.
2) Increased Donation Value
Gifts of appreciated securities can often be more valuable than cash donations of the same original purchase price. This is because the capital gains tax is avoided, allowing the donor to give more to the charity without incurring additional tax liabilities.
3) Supporting Causes Meaningfully
For donors who hold significant investments, gifts of securities can provide a way to make substantial contributions to charities and causes they care about, often making a larger impact than could be achieved through cash donations alone.
How to Market Gifts of Securities
1) Educate Potential Donors
Many potential donors may not be aware of the advantages of donating securities. Educational campaigns through newsletters, webinars, and informational sessions can help to inform donors about the benefits and processes involved in making these types of donations.
2) Highlight Success Stories
Sharing testimonials and success stories from donors who have previously gifted securities can be an effective way to illustrate the benefits and impact of such donations. Real-life examples can inspire others to consider similar contributions.
3) Simplify the Process
One of the barriers to donating securities can be the perceived complexity of the process. Make it easy for donors by providing clear instructions and assistance. Offer resources, such as step-by-step guides and contact information for financial advisors who can help with the transaction.
4) Collaborate with Financial Advisors
Partner with financial advisors and wealth managers who can recommend gifts of securities to their clients. These professionals can play a crucial role in advising donors on the tax benefits and strategic advantages of making such donations.
5) Promote During Tax Season
Tax season is a strategic time to market gifts of securities, as individuals are more focused on their financial planning and tax liabilities. Highlighting the tax advantages of these gifts during this period can motivate donors to take action before the end of the fiscal year.
In conclusion, gifts of securities offer substantial benefits to donors, including tax savings, increased donation value, and the opportunity to support meaningful causes. By educating potential donors and simplifying the donation process, charities can effectively market these gifts and encourage more substantial contributions. Contact us today to boost your fundraising efforts with the benefits of securities!
