Free Ebook.

Enter your email address:

Delivered by FeedBurner

« 12 Rules for Money-Saving Negotiation Success | Main | 5 Moves That Make You Look Cheap »

December 21, 2010


Feed You can follow this conversation by subscribing to the comment feed for this post.

One downside to this for charities: it has to incur the transaction costs for converting the securities to cash. Thus, it doesn't receive the full amount of the donation.

This is one of the most interesting posts I've seen in personal finance blogs in a long time. Good idea FMF!

@Jason, even if the charity pays a brokerage fee, it comes out ahead vs your original cash input (the $500 in the example).

It is a downside, but it's no different than accepting credit card donations or hiring a firm to cage donations--all incur transaction costs.

A larger charity is probably well-equipped to handle a donation of securities without incurring too much in the way of transaction costs.

If a smaller charity receives $10,000 in securities and it costs them $500 to convert the donation, I'm sure they'll be quite pleased with the $9,500--especially since it's likely the donor would have given less than that amount in cash.

Yeah, I'm an auditor of non-profits and more and more of our clients have donors who donate this way. It's more of a pain for us, but it's a win-win for our clients (more donations) and their donors (more tax savings). ;)

I think this is a great way to give. Both parties come out ahead this way.

I would hope that selling the securities wouldn't cost a charity all that much. Its not hard to get a brokerage account with $7-$10 commissions.

The comments to this entry are closed.

Start a Blog


  • Any information shared on Free Money Finance does not constitute financial advice. The Website is intended to provide general information only and does not attempt to give you advice that relates to your specific circumstances. You are advised to discuss your specific requirements with an independent financial adviser. Per FTC guidelines, this website may be compensated by companies mentioned through advertising, affiliate programs or otherwise. All posts are © 2005-2012, Free Money Finance.