Donate Cryptocurrency to Charity
Food for Life Global (FFLG) is an organization dedicated to providing nutritious vegan meals to needy children. Your monetary donations can help us achieve that goal, but did you know that you can also donate cryptocurrency to FFLG? In fact, donating cryptos is the most tax-efficient way to support our cause. Read on to find out more!
How Can You Donate Cryptocurrencies to FFLG?
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 and financial institutions. Since nowadays it’s very easy to donate money online, we believe it should be equally easy to donate cryptocurrency, too.
At FFLG, we’ve made sure that our interface is user-friendly and simple. When it comes to cryptos, all you need to do is choose the donation amount and the currency you want to donate. Next, you need to provide personal info (which is absolutely protected), and that’s it - you’re part of the mission to end food insecurity!
You can donate Bitcoin, but we also accept Ether (ETH), Litecoin (LTC), Bitcoin Cash (BCH), Zcash (ZEC), Gemini Dollar (GUSD), Basic Attention Token (BAT), and Chainlink (LINK).
Is My Cryptocurrency Donation Tax-Deductible?
Cryptocurrencies are classified as property assets (like stocks and bonds). This means 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?
Donating cryptocurrency isn’t a taxable event. You’re not selling your assets, so you don’t have to pay capital gains tax. This means 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 $20,000. If you donate those Bitcoin to charity, you won’t be taxed for the $19,900 gain! You’ll only be deducting the currency’s market value at the moment of donation, meaning you’ll deduct the whole $20,000 without paying capital gains tax on $19,900. It’s definitely more efficient than selling Bitcoin, paying capital gains tax, and then donating cash.
As with other donations, you need to get a receipt from the charity as proof. Keeping a record of your donations will also help you fill out your tax returns more easily. Food for Life Global will, of course, automatically provide the receipt if you decide to donate cryptocurrency to help end child hunger.
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, but young investors aren’t generally discouraged by them.
To meet the needs of our donors, we decided to include 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.
If you decide cryptos aren’t for you, don’t worry. Our standard programs are still up-and-running. 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.