While membership dues remain a cornerstone of association revenue, forward-thinking development teams are looking toward non-dues revenue for long-term stability.

Recent data from the Federal Reserve suggests that the majority of American wealth is held in non-cash assets, such as stocks and real estate, rather than traditional savings and checking accounts. In fact, checkable deposits and currency, time and savings deposits, and other cash deposits account for less than 10 percent of household wealth.

Tapping into high-impact non-cash giving vehicles is now necessary for sustainable association growth. By moving beyond credit cards, your association’s development team can help supporters make more significant contributions that often provide greater tax advantages for them and greater impact for your mission.

The Case for Non-Cash Assets

Most traditional fundraising focuses on the liquid cash donors have after their monthly expenses. However, when associations only ask for cash, they ignore the majority of their supporters’ potential.

FreeWill’s guide to crypto donations highlights a study that supports this statement. Over a five-year period:

• Organizations that accepted only cash donations grew by 11 percent.
• Nonprofits that received any non-cash gifts grew by 50 percent.
• Nonprofits that accepted appreciated securities (e.g., stocks) grew by 66 percent.

Here’s the impact of non-cash giving:

• Maximized donor tax savings. Giving appreciated assets, such as stocks or cryptocurrency, held for over a year allows donors to avoid capital gains taxes they would otherwise owe if they sold the assets.
• Increased impact. When donors don’t have to use part of the asset for taxes, the full fair-market value goes to your association, resulting in larger contributions.
• Greater access to wealth. Supporters can give from their overall net worth without touching the cash they rely on for daily expenses, which may make some individuals more likely to give.

By offering non-cash options, your association empowers members to maximize the impact of their generosity while benefiting from tax-efficient giving methods. This collaborative approach turns a simple contribution into a strategic opportunity for engaged members to strengthen your organization’s long-term financial foundation.

Strategic High-Impact Giving Vehicles

To build a robust non-cash giving program, focus on a few primary giving vehicles:

• Stocks and securities: Stock donations can include publicly traded stocks, privately held stocks, and mutual funds. Many organizations implement a same-day liquidation policy to lock in the gift’s value.
• Qualified charitable distributions (QCDs): For supporters aged 70.5 or older, a QCD allows for a direct transfer of funds from their Individual Retirement Account (IRA) to a qualified nonprofit. This direct transfer avoids income tax on the distribution and counts toward the donor’s Required Minimum Distribution (RMD).
• Donor-advised funds (DAFs): A DAF is a charitable savings account where a donor can deposit money or assets and later decide which charities they want to support. Once the money is in the fund, the donor receives an immediate tax deduction and can advise who receives the grants from it and when.
• Cryptocurrency: Much like stocks, when donated, these digital assets are converted into cash, ensuring the association receives the net proceeds without requiring a digital wallet or exposure to market volatility.
• Bequests and legacy gifts: Legacy giving allows supporters to designate your association as a beneficiary in their will or living trust, allowing them to make a significant future commitment without impacting their current financial security.

Getting Started With Non-Cash Donations

Transitioning to non-cash giving requires updating infrastructure and communication. Start by investing in technology that allows your association to accept your preferred gift types. Your tools should simplify the donation process and provide your team with detailed tracking to properly steward these donations. Effective tools make it much easier to enhance the member journey with non-cash giving options.

With your infrastructure in place, follow these steps to integrate non-cash options into your membership strategy:

• Educate your board and staff. Before explaining these concepts to donors, your internal team must understand the benefits. Provide training on the giving process and advantages of each type of gift.
• Update your ways to give page. Ensure your association’s website covers stock donations, DAFs, and other non-cash options. Avoid jargon to make these complex giving methods easy to understand, and feature inspiring stories of passionate members who donate.
• Integrate non-cash asks into annual appeals. Don’t wait for a major fundraising push to mention non-cash options. Include information about the benefits and processes in member newsletters and renewal reminders.

Start Prioritizing Non-Cash Options

Expanding your fundraising toolkit to include non-cash assets allows your association’s development team to align with your members’ modern financial realities while building a more diversified revenue stream. By prioritizing these high-impact vehicles, your association can remain a stable, influential force within your industry for years to come.