Crypto donations are a tremendously tax-efficient way to support charities. Gifts of cryptocurrency are taxed similarly to stock donations since the IRS views cryptocurrency as a property for taxation purposes. Because of this, donors of bitcoin frequently aren’t required to pay capital gains taxes on their contributed cryptocurrency.
A rising number of businesses already take bitcoin, but the officials in charge of the tax laws do not view it as currency. The same is true for Dogecoin, Litecoin, and any other cryptocurrencies and stablecoins that may be found on exchanges. In spite of the fact that cryptocurrencies are not equivalent to cash, every cryptocurrency transaction (like a sale or exchange) has tax implications. According to current IRS regulations, virtual currency is considered property for federal tax purposes. This implies that any tax laws that govern real estate transactions also govern cryptocurrency transactions.
Giving cryptocurrency is tax-efficient
Donating cryptocurrencies like Bitcoin to 501(c)3 nonprofit organizations is tax deductible* in the United States (as well as in other nations like the United Kingdom, Canada, Australia, and New Zealand), allowing donors to lessen their tax burdens while supporting causes close to their hearts.
The whole tax benefit of donating directly in bitcoin to a nonprofit is lost if you have to transfer to another cryptocurrency or to fiat first. This is very comparable to making a charitable stock donation from a tax standpoint.
How can I donate using Crypto?
Donating Cryptocurrency to Nonprofits is Quick, Easy & Convenient. Sending cryptocurrency using the giving block platform is easier than punching in a credit card. It’s as easy as finding the donation page that hosts a TGB donation widget, filling out your donation amount and using their unique wallet address or QR code to complete the transaction. A tax receipt will be emailed to you once it’s all done, and you can rest easy knowing you donated your Bitcoin to support the mission of Food For life Global.
Food for life Global is creating more impact through innovation this year. In order to increase our mission’s reach, we’re accepting over 100 different cryptocurrencies. Help us celebrate this advancement by donating crypto today.
Food for Life Global is now accepting cryptocurrency and the tax benefits are unmatched. Donating cryptocurrency is a non-taxable event, meaning you do not owe capital gains tax on the appreciated amount and can deduct it on your taxes. This makes Bitcoin and other cryptocurrency donations one of the most tax-efficient ways to support our cause. If you want to learn more about how donating crypto can lower your taxes, check out thegivingblock.com/faq. Talk to a crypto-savvy tax professional or connect with The Giving Block to get connected with one.
We hope you join us to celebrate this exciting new venture in crypto philanthropy, find out more here: https://thegivingblock.com/donate/food-for-life-global/