Here’s how you can Donate Cryptocurrency to Charity
Food for Life Global (FFLG) is an organization dedicated to providing nutritious vegan meals to children in need. Your monetary donations can help us achieve that goal, but did you know that you can also donate cryptocurrency to support our mission? We are one of the very few food relief charities accepting crypto, and we believe that nonprofit cryptocurrency donations can make a considerable difference when it comes to accessibility and sustainability.
Donating cryptos is, in fact, the most sustainable and tax-efficient way to support our cause. If you want to learn more about how it all works and how you can take part in this new era of charity cryptocurrency donations, keep on reading!
How Does Donating Cryptocurrencies Work?
Cryptocurrencies are relatively new forms of digital assets. They’re based on a virtual network and decentralized structure, which means they’re not under the control of the government or financial institutions. Since nowadays it’s very easy to donate money online with the click of a button, we believe it should be equally as easy to donate cryptocurrency, too. Hi
What Cryptocurrencies Do We Accept?
If you’ve decided to support us in our mission and donate the amount you’re comfortable with to a highly effective and environmentally sustainable charity, cryptocurrency can help you make the transaction much more easily.
With FFLG, you can pick and choose the cryptocurrency you prefer when carrying out online transactions: You can donate Bitcoin, Ether (ETH), Litecoin (LTC), Bitcoin Cash (BCH), Zcash (ZEC), Gemini Dollar (GUSD), Basic Attention Token (BAT), and Chainlink (LINK).
How Can You Donate Cryptocurrencies to Charity?
So, how can you make a cryptocurrency donation? At FFLG, we’ve made sure that our interface is user-friendly and simple. Whether you’re looking to donate Bitcoin or proceeds from an NFT, you can head over to our crypto donation page, select your preferred currency, and select the amount you wish to donate, just like you would with a bank transfer. Next, you will need to provide personal information (which is, of course, 100% privacy-protected by us), and that’s it — you’re now part of the mission to end food insecurity!
By making your charitable contribution with cryptocurrency, you can make the most out of the sky-high appreciation of this new digital asset in the most secure and cost-efficient way possible. However, there are a few tax considerations you should get familiar with first, so you can make sure your charity cryptocurrency donation will give you the benefits you’re after.
Things to keep in mind before doing Cryptocurrency Donations
First of all, you should make sure to keep records as proof of the amount you’ve donated. For donations under $250, the donor has to request and keep a receipt showing the name and address of the charity, along with the date the donation was made and the type of currency used.
For donation above that sum but under $500, donors are required to obtain and show a written record from the charity, known as a “contemporaneous written acknowledgement,” showing a description of the donation made and a disclaimer about whether goods or services were given to the donor as a result.
Once completed, this statement must be received by the donor before they file their tax return for the year the contribution was made. For donations over $500, donors are instead required to file an IRS Form 8283 (Noncash Charitable Contributions) alongside their tax return, while for generous donations over $5,000, they will also be required to complete section B of the form following a qualified appraisal.
Food for Life Global will, of course, automatically provide the receipts you need if you decide to donate cryptocurrency to help us in our mission to end child hunger.
Is My Cryptocurrency Donation Tax-Deductible?
Now, let’s get to the reason why, exactly, nonprofit cryptocurrency donations make for such a cost-efficient and accessible contribution medium.
Cryptocurrencies are classified as property assets (like stocks and bonds), meaning that donations to 501(c)3 nonprofits (such as FFLG) are completely tax-deductible if you’re a US-based donor. On top of this, if you decide to donate Bitcoin to charity instead of making cash contributions, you can lower your taxes even more. How is that possible?
In short, donating cryptocurrency isn’t a taxable event. Since you’re not selling your assets, you don’t have to pay capital gains tax, meaning you can deduct the appreciated amount on your taxes without additional costs.
Let’s clarify a bit with an example.
You might have been one of the lucky ones to buy Bitcoin for, say, $100, but now they might be worth over $50,000. If you donate those Bitcoin to charity, you won’t be taxed for the $49,900 gain! You’ll only be deducting the currency’s fair market value at the moment of donation, meaning you’ll deduct the whole $50,000 without paying capital gains tax on $49,900. It’s definitely more efficient than selling Bitcoin, paying capital gains tax, and then donating cash.
Why Do We Accept Cryptocurrency Donations?
Charities for children need to be adaptable and offer modern options for their donors. Bitcoin and other cryptocurrencies are taking the lead when it comes to alternative economic systems. Young adults are investing in cryptos more than in bonds and stocks because they want to utilize peer-to-peer technology and avoid using banks for every transaction they have.
Cryptos are appealing to young people because they’re a part of the open, borderless, and neutral cash system without regulations from the government and financial institutions. This, of course, comes with some uncertainties (the so-called volatility), but young investors aren’t generally discouraged by them.
Still, there’s more to this new asset than just being popular among the younger crowd.
Here are some of the reasons why we decided to open our doors to crypto donations and keep working toward making nonprofit cryptocurrency donations more accessible:
Cryptocurrencies are overall more transparent than traditional currencies, so much so that donors are able to trace where their donation went and what it was used for, down to specifics. As traditional currencies are fungible (meaning they can be replaced by another unit with little to no effect), increased transparency is a major point in favor of donating to charities with cryptocurrency.
FFLG, like many other international charities operating across borders and in many different countries, incurs losses when transferring their donation funds to different international accounts, due to the exorbitant fees of international bank transfers.
Cryptocurrency, on the other hand, is a non-geographic and decentralized asset, making for a more cost-efficient and effective way of both donating and using contributions.
Cryptocurrency investors not only have the means to generate new income and hefty capital, but they can also use mining software designed for charitable giving, allowing a portion of any revenue generated from the mining to automatically go to charity.
These initiatives allow for virtually cost-free giving, leading to more prospective donors donating more frequently to charities they want to support.
You Can Contribute in the Way that Suits You Best
In a nutshell, we believe that charity cryptocurrency donations are the future.
That’s why we have decided to meet the evolving needs of our donors by including crypto donations as a part of the various donation options we offer. Our donors are very passionate about saving children, protecting animals, and taking care of the environment, so it’s only natural to encourage that passion by providing donating options for everyone.
Still, if you decide cryptos aren’t for you, there’s no need to worry. Our standard programs are still up and running, so if you want to give monetary contributions or sponsor a child, we’d be more than happy to hear from you! You can take pride in the fact that your contributions will help starving children all over the world, and that your charitable donations will be used in the most environmentally sustainable, cost-efficient, and kind way possible.
You can learn more about our core values and our food relief efforts by visiting our emergency relief page or get in touch with us directly with your donation questions — we can work toward a brighter future free from child food insecurity together.