Stock

Explore stock as a payment method in Checkout

Fundraise Up's stock giving feature makes it possible for donors to effortlessly donate using stock at checkout. With donation sizes that are 70x greater than typical money-based payment methods, stock is a recommended expansion to your online fundraising channels.

How it works

Donors give stock donations using a donation checkout that has been configured to allow stock as a payment method. Below, we describe the donation flow and donation processing workflow for stock giving.

Checkout

At checkout, a donor selects the brokerage account they intend to donate from. If a selected brokerage account can be connected to using Plaid, a donor is prompted to connect to their brokerage account by logging in using their account credentials. If an account cannot be connected using Plaid, this option is not shown.

There are two approaches to implementing stock giving in Checkout. These approaches are described below.

Stock as a payment method option Best for general purpose campaigns. Supporters can easily toggle between money-based methods and noncash options like stock or crypto. Works well for building awareness and engaging “passerby” stock donors. See an example.
Stock-specific Checkout Best for stock giving campaigns that should not reference other payment options. See an example.

The settings for configuring the stock giving feature are managed at the campaign level in the Fundraise Up Dashboard: Campaigns > [Example campaign] > Payment methods.

Plaid-connected donor accounts

Connecting an account using Plaid enables a supporter to view and donate only the stocks and shares they own. This prevents a supporter from accidentally submitting a donation for stocks that they may not own.

When a supporter connects to their brokerage account using Plaid, Fundraise Up is granted read-only access. This means that Fundraise Up can not make changes, which is the preferred approach for many security-minded supporters.

Manually-connected donor accounts

In some cases, a supporter’s brokerage account may not be compatible with Plaid, or a supporter may prefer to manually input their account details. In this scenario, a supporter can select the Add my details manually option at checkout.

Selecting stocks

Once a supporter has chosen a connection method, they can select the stocks they want to donate. Stocks are looked-up using the built-in search function, which queries a database of publicly-traded companies in the New York Stock Exchange (NYSE) or NASDAQ markets.

Returned results include the name, ticker symbol, and approximate share value expressed in US dollars. Share prices are provided in near-real-time.

Supporters can add multiple stocks and for each added stock, input the number of shares they wish to donate. A subtotal field reports the total approximate dollar value of the stocks to be donated.

Account information

To donate stock using a Fundraise Up, four informational items are required from a donor:

  • Brokerage account number (required for both Plaid and manually-connected accounts)
  • First name
  • Last name
  • Email address

The personal information (first and last name, email address) collected for a stock donation is a standard requirement for a donation processed using Fundraise Up. Not only does this information form the core of a supporter record, it is also useful for helping you reconcile and acknowledge stock donations.

Similar to money-based checkouts, stock donation checkouts can include fields for collecting a supporter’s phone number, opting-in to your email list, and agreeing to your organization’s terms and conditions or privacy policy.

It is also possible to add Questions to a stock donation checkout, and enable Comments, Designations, and tribute giving.

Mailing address

A supporter is not required to input their mailing address to complete a stock donation. You can enable the address collection screen, but we recommend not requiring a supporter to provide their address information.

In some cases, your organization may require collecting address information for certain donation sizes. Use Checkout’s conditional logic rules for mailing addresses to define when a donor is prompted and required to input their address information.

Signature collection

A digital signature is collected for all stock donations. This signature authorizes the transfer of stock from a supporter’s brokerage account to your organization’s brokerage account. In cases where a brokerage account is owned by a second account holder, a second signature can be added in Checkout.

Review screen

Before completing checkout, a supporter is shown a summary of their stock donation, including their personal details, account information, and the stocks they intend to donate. Once a supporter selects Donate, the donation is submitted for processing.

Processing a stock donation

To facilitate the transfer of stock from your supporter’s brokerage account to your organization’s account, Fundraise Up requests the transfer from thee supporter’s brokerage firm. Typically, this request is completed using a brokerage firm’s existing procedures for transferring stock as a donation, but in some cases, Fundraise Up will provide a transfer order request if a brokerage firm does not have a set process.

Transfer requests are typically initiated by Fundraise Up the same day that a stock donation is made. Once a request is initiated, it can take up to 14 business days for a brokerage firm to complete a transfer.

Statuses

A stock donation has one five statuses. This status is updated as a stock donation is processed and settled. The five statuses are described below:

Status Description
Pending The default status for a stock donation that has been made by a supporter but not yet processed by Fundraise Up
Fail The donation could not be completed. The transfer was flagged as fraudulent, or cancelled at the request of the supporter or your organization
Fail, not eligible The donation could not be completed. The brokerage firm may not facilitate stock transfers for charitable purposes
Waiting on transfer A transfer request was sent from Fundraise Up to the supporter’s brokerage firm
Success Your organization received a supporter’s stock donation

Receiving a stock donation

Once a transfer is complete, your organization receives a supporter’s original shares. Fundraise Up does not receive and then liquidate the shares and provide your organization with the cash value. This approach provides your organization with control over how stock donations are processed and ensures that a supporter’s relationship is with your organization and not Fundraise Up.

Once we confirm that your organization has received a supporter’s stock donation, the donation receipt is automatically issued to the supporter. The receipt includes the stocks and number of shares donated, but not the donation’s monetary value, as required by IRS regulations.

Donor Portal

Like other donations, supporters can review and manage their stock donations in Donor Portal, a self-service dashboard. Learn more →


Medallion Signature Guarantee

Fundraise Up Inc. is a member of the Medallion Signature Guarantee program, and can certify stock donations transfers of up to $1M in value.

A Medallion Signature Guarantee is required for many transfers, especially transfers of significant value. By providing the guarantee, we expedite the processing of stock donations and reduce the number of steps required of a donor to make a stock donation.


Elements compatibility

Since Elements is designed to work primarily with money-based fundraising, some components or features are not compatible with stock giving. Review our documentation on Elements compatibility for more information. Learn more →

Incompatibility with P2P Fundraisers: Stock giving is not compatible with P2P Fundraisers. If you enable stock giving for a campaign that P2P components are already connected to, the P2P functionality will stop working.

Pricing & billing

By default, stock donations are billed at 5% per transaction.

Since stock donations are not processed using a typical payment processor like Stripe or PayPal, the transaction fee is not taken at the point of donation. Instead, transaction fees for successful stock donations are assessed on a monthly basis and billed to a card on file provided by your organization.


Connecting an account

To enable stock giving, you connect your organization’s brokerage account to Fundraise Up. You can either connect the account using Plaid or by manually providing the account details. Both connection methods are described in this section.

Plaid connection

Connecting your brokerage account to Fundraise Up using Plaid enables automations that let Fundraise Up more accurately determine when a stock donation has arrived in your organization’s brokerage account. This helps ensures that a supporter receives a donation receipt as quickly as possible.

Not all brokerage firms offer compatibility with Plaid. We recommended trying to connect using Plaid, but if you run into issues with the connection, you can instead use the manual connection method, which is described below.

Connection steps

To connect your organization’s brokerage account using the manual connection methods, follow the steps below.

Prerequisites

  • Access to your organization’s Fundraise Up account with using an account that has the Organization Administrator user role
  • Administrative access to your organization’s online brokerage account dashboard.

Steps

  1. Log-in to your organization’s Fundraise Up account.
  2. Select your user name from the upper right area of the Dashboard.
  3. Select Settings.
  4. In the sidebar navigation, select Payment methods.
  5. In the “Payment processors” section, select Brokerage account.
  6. Select Connect brokerage account.
    You may be prompted to request activation of the stock giving feature for your organization’s account. If this is the case, a support representative will need to enable the feature. This process is typically completed in one business day.
  7. When the Plaid connection screen is displayed, select Continue.
  8. Use the search function to look up your organization’s brokerage firm.
  9. Select your organization’s brokerage firm from the search results.
  10. When prompted, log in using your brokerage account credentials.
  11. On the “Select account” screen, select the brokerage account you want to connect to Fundraise Up.
  12. Select Continue.
  13. If prompted, complete any authorization confirmations presented by the brokerage firm.
  14. On the Plaid “Success” screen, select Continue. You will be directed back to Fundraise Up.
  15. In the Brokerage account number field, input your organization’s account number. Typically, this number is displayed in the brokerage account dashboard.
  16. Select Connect.

Your organization’s brokerage account is now connected and you can enable stock as a payment method in Checkout.

Manual connection

You can manually connect your organization’s brokerage account if you encounter issues with the Plaid connection method. The manual connection method offers virtually the same functionality as the Plaid method, but without some of the back office automations that helps us more accurately track donations in progress.

Using the manual connection method does not reduce the speed at which we process stock donations.

Connection steps

To connect your organization’s brokerage account using the manual connection methods, follow the steps below.

Prerequisites

  • Access to your organization’s Fundraise Up account with using an account that has the Organization Administrator user role
  • Your organization’s brokerage account number

Steps

  1. Log-in to your organization’s Fundraise Up account.
  2. Select your user name from the upper right area of the Dashboard.
  3. Select Settings.
  4. In the sidebar navigation, select Payment methods.
  5. In the “Payment processors” section, select Brokerage account (manual connection).
  6. Select Connect brokerage account.
    You may be prompted to request activation of the stock giving feature for your organization’s account. If this is the case, a support representative will need to enable the feature. This process is typically completed in one business day.
  7. Follow the prompts to provide information about your organization’s brokerage account.
  8. In the “Organization contact details” section, include at least one team member at your organization who we should contact about stock giving-related matters, including billing details. If you have multiple team members who handle stock giving, you can include additional contacts.
  9. Select Connect.

Your organization’s brokerage account is now connected and you can enable stock as a payment method in Checkout.

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