With Overflow, you not only gain new fundraising opportunities – but also trusted partners dedicated to helping you every step of the way.
“Overflow has dramatically simplified our stock donation process, allowing our team to spend more time focusing on our mission! It's a notably better donor experience compared to before.”
“The time savings is significant! That, plus the better user experience for our most important donors, is well worth the subscription fee.”
Studies show that nonprofits receiving stock and crypto are growing 55% faster than those that don’t. Because donors hold more wealth in stock and crypto than cash and they don’t rely on stock and crypto for day-to-day expenses, stock and crypto donations are usually larger than cash donations. The average donation through Overflow is $10,000, which is 100x larger than the average cash donation nationwide.
When a donor gives stock to a nonprofit, the donor and the nonprofit don’t have to pay any capital gains tax on the appreciated amount. Donors also receive a greater tax write-off at the market value of the stock upon donation, regardless of what they bought the stock for.
There are two key tax advantages for donors who donate stock over cash:
501(c)3 nonprofits are exempt from capital gains tax. If a nonprofit receives a $100 stock and it eventually turns into $1000, the nonprofit can sell the stock and it will not be subject to capital gains tax on the $900.
Overflow is designed to be a simple and efficient way to donate stock to your favorite nonprofits. Its user-friendly platform provides donors and nonprofits with greater autonomy in how they give and receive stock donations. Overflow is in many ways complementary to a Donor-Advised Fund.
The main difference between DAFs and Overflow is that Overflow does not hold the donor’s stock in a separate account. Stocks donated via Overflow are transferred directly from the donor to the nonprofit’s brokerage. Notably, this distinction means that the donation is deployed instantly to the nonprofit, who can begin utilizing the funds without delay.
The donor transfers their shares to a DAF (this is considered a donation) and can be held in this fund until the donor directs a broker to donate it towards a nonprofit.
Overflow can facilitate stock donations to any registered 501(c)3 public charity that is in good standing with the IRS, such as local and global charities, churches, and universities.
A 501(c)3 is a charitable organization that is exempt from federal income tax under section 501(c)(3) of Title 26 of the United States Code.