As the S&P 500 continues to deliver whirlwind profits to investors in the United States, more residents are using fintech to make tax-efficient charitable donations at scale.
While stocks and shares in the US have continued to grow to fresh all-time highs, charitable giving has swelled. Total donations
reached $592.50 billion in 2024, lifted by stock market gains, and with the S&P 500 growing more than 10% between the beginning of 2025 and September, it appears likely that more investors will be looking for ways to donate their appreciated stocks to ease
their tax burden in the months ahead.
The recent news that the US economy
added 911,000 fewer jobs than previously estimated in the 12 months ending in March 2025 has fueled expectations for a Federal Reserve rate cut in the days ahead, with many investors linking the prospect of cuts to more stock market growth in the final
months of 2025.
Finding Tax Efficiency
Making charitable donations from your profitable stocks is a popular means of making your earnings more tax-efficient. Today,
nearly 65% of high-income taxpayers donate cash to charity. However, less than 10% donate marketable securities, a figure that indicates many are missing out on the full tax advantages associated with their long-term appreciated securities.
With the right level of planning, you can donate long-term appreciated securities directly to a qualified charity, with the fair market value deducted from your taxable income, so that neither you nor your chosen charity will be taxed on the capital gain.
This means that you can make a bigger impact with your donation by gifting your stocks rather than liquidating them and gifting the cash that remains after you’ve paid up to 23.8% in federal capital gains.
But how can you effectively donate your stock? One of the most effective ways is through a donor-advised fund (DAF), which allows you to donate your stock to the fund and take an
immediate tax deduction before deciding later on which charities will receive your funds.
Many investment firms offer this form of tax efficiency, with Fidelity Charitable and Schwab Charitable both offering DAFs.
Frictionless DAF Access with Fintech
Innovative fintech solutions are empowering more investors to become more tax-efficient with their charitable giving. Daffy is one example of charitable fintech in action and allows financial institutions and fintechs to take advantage of having a donor-advised
fund (DAF) by providing their customers with the ability to donate to almost any charity.
Daffy incorporates donations into financial budgeting and investing apps, as well as eCommerce sites and marketplaces, for a more comprehensive range of donation options.
Crucially, Daffy also allows investors to donate cryptocurrencies to charitable causes, opening the door to far greater tax efficiency, all in the name of contributing to nonprofit initiatives.
Given that around 60% of Gen Z and 40% of Millennials
financially support organisations actively engaged in social issues, fintechs offering flexibility when it comes to directly donating stocks can be a strong component contributing to meaningful causes.
Donating Crypto
Cryptocurrency is fast becoming a popular asset for making donations among investors, particularly when it comes to younger, tax-conscious savers.
Some
47% of investors aged 43 or younger report holding cryptocurrencies, which makes accepting crypto donations a key consideration for nonprofit organisations. Fortunately, fintech is helping to support more diverse means of contributing money.
Impressively, more than $1 billion in cryptocurrency has been donated to charitable causes in 2024 alone, with the average value of donations weighing in at $10,978.28, which is a 386.33% increase from 2023.
With 70% of Forbes’ Top 100 Charities now accepting cryptocurrency donations, the opportunities for younger investors to become more tax-efficient with their giving have expanded significantly.
Scalable Donations
Not only is it becoming easier for charities to accept donations across different asset classes, but it’s also easier than ever for investors to build their charitable contributions at a pace that suits them.
Fintech platforms like RoundUp make use of the spare change of users to either invest money in portfolios or set up donations for charitable causes. With more than 1,000 nonprofit organisations on the platform, RoundUp has reported that donors were contributing
an
average of $15.34 per month in charitable contributions.
Financial technology solutions are also helping more charities accept donations from investors.
For example, platforms like Mightycause actively streamline donor management and communication at scale through their
CRM system to ensure that nonprofits can autonomously track, manage, and grow relationships with their donors to improve their engagement with investors.
Caring for Tax Efficiency
As the stock market outlook continues to strike an optimistic tone among investors, the second half of
2025 could see donations rise as individuals look to care for their tax obligations.
While achieving tax efficiency comes with its own challenges, fintech tools and digital finance are helping to pave the way for a frictionless experience when it comes to charitable donations.
Whether you’re seeking to invest in stocks via a DAF or want to contribute cryptocurrency directly to your chosen charity, it’s becoming easier than ever to donate on your terms, helping to care for the causes close to you and boost your tax benefits along
the way.