Whether you work for a large or small nonprofit, the question “How do we bring in more funding?” is always on your mind. You’ve already asked existing donors for more support, raised membership fees, and exhausting events, but no matter how much you raise, the need keeps growing.
What else can you do? Enter the millennial generation.
High-earning millennial donors are rapidly becoming a powerful force in charitable giving. There are 618,000 millennial millionaires in the U.S. and their wealth is only expected to grow, according to a report by Coldwell Banker. More importantly, millennials are investing in stocks more than ever before. In 2020 alone, Millennials made up for nearly 20% of the stock market’s trades and investing apps like Robinhood demonstrated that daily trades were up by 3X.
So, how can you tap into this emerging market?
Millennials have surpassed baby boomers to become the largest generation in the country, according to the U.S. Census Bureau. The group — made up of roughly 72.1 million people — ranges in age from 25 to 40, according to the Pew Research Center. This makes this generation more important than ever. Millennials are the first generation of digital natives, so the importance of using technology to reach this group cannot be ignored. To maximize your fundraising efforts, make it easy for millennials to donate stock and other non-cash assets through your online donation page. By providing another way to give alongside cash donation flows enable millennials to think about stock donations in a whole new way.
Providing a digital stock-giving solution creates less friction for donors (Have you ever asked a millennial to fax a form?). It is no wonder why nonprofits that receive stock donations see 55% higher fundraising growth than those that only accept cash. Additionally, creating a digital stock donation solution gives your donors the opportunity to give another way, and opens up a new fundraising channel for your nonprofit.
But, most donors won’t even be aware that donating stock is the most effective way to donate.
How can you educate and reach the millennial donor base on Non-cash assets like stock donations?
Despite their strong interest in philanthropy, most millennials won’t really know about the benefits of stock donations. The best way to educate this donor base is to create empowering explanations that help them learn and understand the benefits of donating stock quickly and easily.
Make sure to add the tax benefits of donating stock to your donation page. For example, most millennial donors won’t know that:
“Donating stock can be one of the most tax-efficient ways to give. By donating appreciated stock that you’ve held for over a year you could potentially save up to 20% in capital gains taxes and potentially deduct the charitable donation on your federal income taxes.”
During Giving Tuesday the primary barrier for a high-value donor gifting stock is the lack of awareness of the opportunity and optionality to donate non-cash assets like stock donations. In addition, they are not aware that stock giving is the most tax-efficient way to give for two reasons:
1). Giving from different assets stored outside of a checking account used for everyday expenses
2). The significant tax benefits stock donations provide, create a win-win proposition for donors.
Stock giving tax education spans three major cornerstones:
- Tax Efficiency
- Ease of Giving
- Maximizing Impact
By incorporating this type of messaging into your campaigns it will maximize the potential for more millennials to donate to your organization. They are by far the most digitally native generation hence it’s important to maintain an online presence across your socials. At Overflow, we're excited to open new ways for nonprofits to fundraise and on GivingTuesday encourage you to join in our #ShareAShare campaign. Try out these messages below to engage with your audience.
Eager to make an outsized impact on #GivingTuesday? Donating stock is the most tax-efficient way to give #ShareAShare.
- Make a larger impact on #GivingTuesday by donating stock! #ShareAShare
- Donate stock today to maximize your impact and save on taxes. #GivingTuesday #ShareAShare
- This #GivingTuesday donate stock through our simple and secure donation page. #ShareAShare
- Maximize your impact on #GivingTuesday and increasing your tax savings when donating stock! #ShareAShare
- Don't want to wait until #GivingTuesday to support us! Deepen your impact and increase your tax savings today when donating stock.
On Giving Tuesday try tapping into a new fundraising channel through stock donations while engaging with a new generation of philanthropists.
If you’re interested in learning more about non-cash fundraising check out our latest ebook "Stock Donations Guide For Nonprofits" here.