End of Year Stock Giving: What You Need to Know

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Do you know when to submit your stock donation so that it is processed in time before the end of the year? We're excited that you're considering a generous stock gift to your favorite nonprofit! But first, make sure to read through this article for important tips on getting this processed by year-end. 

 

Unlike cash or credit card donations, stock donations do not happen immediately. The IRS considers a gift "complete" when the nonprofit receives it into THEIR account. And, due to market closures and brokerage delays at year-end, some brokerages can take up to 3 weeks to process your request and send your gift to the receiving nonprofit.

 

⚠️⚠️⚠️ If getting your gift completed before the end of the year is important to you for tax purposes, we recommend that you initiate your transaction with Overflow no later than December 10th of the current year.

 

Why December 10th?

In previous years, we've seen wait times at major brokerages increase significantly - by as much as 3+ weeks. This is due to the increased volume of stock transfer requests at this time of year, combined with market closures for the holidays. Brokerages themselves recommend that their clients initiate gifts sooner rather than later. By submitting your donation on 12/10 or earlier you will have a better chance of "beating the rush" and having your gift process within this calendar year. 

 

What happens if I missed the December 10th recommendation?

We understand not everyone will be able to submit their gift by this date but may still want to participate in generosity through stock giving. Not to worry! Overflow's Donor Operations team can help facilitate transactions as fast as possible. While we can't guarantee the outcome, we have used certain strategies specific to year-end gifts that have worked in the past, and we're ready to deploy these for your gift! Learn more about our concierge support.

 

Oh no! I waited until the last, last minute (after 12/22.) Now what?

Unfortunately, we've seen that transactions submitted through Overflow in the last week of the year have a low likelihood of being received in the same calendar year. While we don't want to stop you from participating in generosity, we do want you to know that due to market closures during the last week of the year, the likelihood of a transaction submitted after 12/22 fully transferring to the receiving nonprofit before the end of the year is very low. Rest assured our team will be ready to receive your request and communicate the options available to you.

 

Do you provide any guarantees on gifts received in the same year?

While we are here to help facilitate gifts as quickly as possible, we can not guarantee any gift is transferred to the receiving nonprofit in the same calendar year. This being said, the earlier you can get your transactions in, the better chance of that transaction being received by the nonprofit within the calendar year.

 

We're here to answer any questions you might have! Please feel free to reach out to stockgifts@overflow.co or call +1 (650) 449-4541 ext. 001.

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