Un-Cashed: How to Give Stock, Crypto, or a Donor-Advised Fund Grant to a Small Nonprofit
A client calls in November. She has shares of a tech stock she bought years ago, a small crypto wallet she has stopped watching, and a donor-advised fund she opened during a good year. She wants to support a small anti-trafficking charity, but she assumes only big institutions can take anything other than a credit card. That assumption costs donors money every year. This guide explains how to give stock, crypto, or a donor-advised fund grant to a small nonprofit, what the IRS rules say, what paperwork you need, and how advisors can make the gift go smoothly for everyone involved.
The short answer
You can give stock, crypto, or a donor-advised fund (DAF) grant to a small nonprofit as long as it is a 501(c)(3) public charity with a way to receive the asset. Many small charities now accept all three through third-party giving platforms. Giving long-held appreciated stock or crypto directly usually lets you deduct fair market value and skip capital gains tax, while a DAF grant moves money you have already set aside for charity. Confirm the details for your situation with a qualified tax advisor.
Why give assets instead of cash?
The main reason is simple: appreciated assets can do more good than the cash you would have left after selling them.
When you sell a stock that has grown in value, you owe capital gains tax on the growth. If you give that same stock to a charity instead, IRS Publication 526 explains that you can generally deduct the fair market value of the property at the time of the contribution, with adjustments in some cases. The charity, as a tax-exempt organization, can then sell it without owing that tax.
There are limits. Under Publication 526, gifts of capital gain property to public charities are generally limited to 30% of your adjusted gross income, and amounts over the limit can be carried forward. Cash gifts to public charities fall under a higher limit. The 30% rule matters for clients making very large gifts in one year.
The holding period also matters. "Capital gain property" in Publication 526 refers to assets that would produce long-term gain if sold, which generally means you held them more than one year. Short-term holdings are treated differently and often produce a smaller deduction.
How do you give stock to a small nonprofit?
Giving stock is easier than most donors expect. Here is the step-by-step process.
Choose the right shares. Pick lots you have held more than one year with the largest gain. If a position has lost value, it is often better to sell it, claim the loss, and give the cash.
Confirm the charity can receive stock. Some small charities have their own brokerage account. Many use a giving platform that accepts securities on their behalf.
Get the transfer details. You need the charity's legal name, EIN, and either brokerage instructions or a platform link.
Initiate the transfer through your broker. Most brokers have an online form for a charitable stock transfer.
Tell the charity. Transfers often arrive without the donor's name attached. A short email with your name, the stock, the number of shares, and the date helps the charity thank you and send a receipt.
Keep your records. You will need the charity's written acknowledgment and, for larger gifts, Form 8283.
Timing tip for year-end. Publication 526 says a properly endorsed stock certificate is considered delivered on the date of mailing or other delivery to the charity. If you give the certificate to your agent or the company to transfer, the gift is not complete until the shares move on the company's books. Electronic transfers can take several business days, so start early in December.
How do you give cryptocurrency to a charity?
The IRS treats cryptocurrency as property, not currency, for tax purposes. That shapes everything about how a crypto gift works.
According to the IRS's frequently asked questions on digital asset transactions, a charity that receives virtual currency treats it as a noncash contribution. For donors, that means the noncash rules apply:
Over $500: Publication 526 requires you to complete Form 8283, Section A for noncash deductions over $500 and up to $5,000.
Over $5,000: The Form 8283 instructions require a qualified appraisal for most noncash gifts above $5,000, and they cover digital assets. Unlike publicly traded stock, crypto does not get an exception from this rule, so plan ahead.
Charity signature: The IRS FAQ says the charity generally must sign your Form 8283 when the claimed deduction is over $5,000. Its signature confirms receipt, not the value.
Charity reporting: If the charity sells the crypto within three years, it files Form 8282 with the IRS and gives you a copy.
Practical steps:
Confirm the charity accepts the specific coin or token you hold.
Send it from your wallet or exchange to the address the charity or its platform provides. Do not sell first if your goal is to avoid capital gains.
Save the transaction record, including date, amount, and wallet addresses.
For gifts likely to exceed $5,000, line up a qualified appraiser before year-end.
How do you give from a donor-advised fund?
A donor-advised fund is an account held by a sponsoring charity, such as a community foundation or a financial firm's charitable arm. You received your tax deduction when you put money into the fund. Later, you recommend grants to the charities you choose.
DAFs are now a major channel for giving. The Donor Advised Fund Research Collaborative's 2025 Annual DAF Report found that DAF grants reached about $64.9 billion in fiscal year 2024. For small nonprofits, a DAF grant is often the largest gift they receive all year.
Recommending a grant usually takes a few minutes in your DAF portal. Search for the charity by name or EIN, enter the amount, and choose whether to share your name. Sharing your name and address lets the charity thank you; it is your choice.
Three DAF rules advisors should flag
No event tickets or benefits. In IRS Notice 2017-73, the IRS said a DAF grant that pays for a donor's gala ticket or table provides more than an incidental benefit, even if the donor pays the non-deductible part separately. Pay for tickets personally and use the DAF for the gift.
Pledges can work, carefully. The same notice described a proposed approach allowing a DAF to pay a donor's pledge if the sponsor does not reference the pledge and the donor gets no other benefit. Check your sponsor's current policy.
No double deduction. Because you deducted the money when it went into the fund, the grant itself is not deductible again. DAF contributions also do not count toward the new $1,000 or $2,000 deduction for non-itemizers that began in 2026, which Fidelity Charitable notes applies to cash gifts made directly to operating charities.
Stock, crypto, or DAF: which fits your client?
Appreciated stock (Best for: Long-held positions with large gains; Key paperwork: Written acknowledgment; Form 8283 for noncash gifts over $500; Watch out for: 30% of AGI limit; transfer time in late December)
Cryptocurrency (Best for: Long-held coins with large gains; Key paperwork: Form 8283; qualified appraisal over $5,000; Watch out for: Appraisal cost and timing; charity must accept that coin)
DAF grant (Best for: Donors who already funded a DAF; Key paperwork: Sponsor handles grant records; Watch out for: No tickets or benefits; no second deduction)
Cash or card (Best for: Smaller gifts, non-itemizers; Key paperwork: Written acknowledgment for gifts of $250+; Watch out for: Gains on assets you sold to raise the cash)
For any single gift of $250 or more, the IRS requires a contemporaneous written acknowledgment from the charity. Make sure the charity knows the gift came from you so it can send one.
A note for wealth advisors
Small charities are often the most grateful recipients of asset gifts, and also the least staffed to chase down an unnamed transfer. A few habits help:
Ask for the charity's preferred route before initiating anything. A platform link or brokerage instructions prevents lost transfers.
Send a heads-up email on the client's behalf with the asset, quantity, and expected date.
Check the charity's status in the IRS Tax Exempt Organization Search before year-end.
Plan appraisals early for crypto and other noncash gifts over $5,000.
Separate benefits from gifts. Pay for event tickets personally, and route the charitable portion through the DAF or a stock gift.
Coordinate with the CPA on AGI limits, carryforwards, and the new 2026 rules for itemizers.
Every client's tax picture is different, so please confirm specific gifts with a qualified tax or legal advisor.
What you can do
List your clients' most appreciated holdings and DAF balances before Thanksgiving.
Choose one small, well-run charity your client already cares about, and ask how it receives stock, crypto, and DAF grants.
Start transfers by early December so they land in the right tax year.
Ask for the written acknowledgment and keep it with the client's tax file.
Leaving The Jar is a 100% volunteer-run 501(c)(3) (EIN 37-1476325). We have no paid staff, no debt, and our founders take $0 in pay. In 2025, 87.2% of total expenditures went to program services. We hold the Candid Platinum Transparency Seal for 2026 and a 3-star Charity Navigator rating. Our financials and transparency documents are open to you and your clients.
We accept DAF grants, stock and mutual funds, and major cryptocurrencies through our giving partner, along with card, bank transfer, and employer matching. Gifts support free trafficking-prevention training, our Egypt student program, survivor businesses in Kenya and Zambia, and The Well of Hope, a planned 10-bed, trauma-informed safe home for adolescent survivors in the Washington, D.C. area.
FAQ
Can a small nonprofit accept stock donations?
Yes, if it has a brokerage account or uses a giving platform that receives securities for it. Many small charities now accept stock through online platforms that handle the transfer and sale. Ask the charity for its preferred method, its EIN, and transfer instructions, then let it know your name and the details so it can thank you and send a receipt.
Is donating crypto to charity tax-deductible?
Gifts of cryptocurrency to a qualified 501(c)(3) are generally deductible because the IRS treats crypto as property. If you held it more than a year, you may be able to deduct its fair market value. Noncash rules apply: Form 8283 for gifts over $500 and a qualified appraisal for most gifts over $5,000. Confirm your situation with a qualified tax advisor.
Can I use my donor-advised fund to buy gala tickets?
No. In Notice 2017-73, the IRS said a DAF grant that pays for tickets or other benefits to the donor gives more than an incidental benefit, even if you pay part of the cost yourself. Buy tickets with personal funds and use your DAF for a separate gift with no benefits attached.
What is the difference between giving stock directly and giving it to my DAF?
Both can avoid capital gains and give you a fair market value deduction for long-held shares. Giving directly sends the full value to one charity right away. Giving to a DAF gives you the deduction now and lets you recommend grants to one or many charities over time. Many donors use both.
When does a stock gift count for this tax year?
Under Publication 526, the timing depends on how the shares move. A properly endorsed certificate is delivered when mailed or delivered to the charity, while a transfer through your agent or the company is complete when it is recorded on the company's books. Electronic transfers can take days, so start in early December.
Make your gift go further
If your client wants appreciated assets to protect and restore young lives, you can give stock, crypto, or a DAF grant to Leaving The Jar.
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