The crypto community is full of amazing people. People who truly want to help one another – and who are very generous overall.
While the market may be down right now, we know it’s coming back. As a HODLer, you’re just holding on to what you have – and if you can – buying the dip! But it doesn’t mean you stop caring, donating or volunteering for your charity or cause of choice.
If anything, given what’s happening in the world, this is the time that we should be doing more – if we can. We’re also at the middle of the year and likely thinking about what donations we want to make in 2021. And if you’re anything like us, what are the non-profits that have missions we support (children and animal-related) AND also accept cryptocurrencies?
As more and more people start to purchase and/or invest in cryptocurrencies, they will want to start donating their cryptos, too.
Why should you, as a donor, care about supporting organizations that accept cryptocurrencies? Let’s learn about some of the key benefits.
- Donors may enjoy significant tax benefits.
- Donated cryptos to non-profits are usually treated like donations of appreciated real property stocks and other assets.
- You can take a tax deduction based on the crypto’s value at the donation date rather than its value when you purchased the cryptocurrency.
- No capital gains tax (like on donated stocks) and the donor can write off the full amount of the crypto donation.4
- It’s usually easy to donate—and it’s secure since it’s using blockchain technology.
But what if your favorite charity isn’t accepting crypto donations yet?
You can try and educate the charity’s team regarding the benefits of accepting cryptocurrencies. Now, it doesn’t mean that they will come running with open arms, but maybe you get the wheels turning and maybe, just maybe, that charity decides to accept cryptos. What a big win for you – for them – and for their mission.
Here’s some helpful information to share with your favorite non-profit(s) as it considers accepting cryptocurrency donations:
- Learn more about cryptocurrency—and really find out if your organization should accept cryptocurrency as a tax-deductible donation.
- Work with your organization’s team and Board to continue being a good steward of your organization’s funds as well as its mission.
- A new source of funding which diversifies your organization’s revenue sources is always a good thing.
- Your organization will likely be tapping into a new group of donors – those who want to donate using crypto. (FYI: There are about 70 million people using blockchain wallets worldwide.5)
- Accepting crypto donations will likely mean a review of and/or changes to your organization’s gift acceptance policy and your investment policy – depending on how your team decides to handle its cryptocurrency donations.
- Your organization could cash out the crypto donation ASAP for a clear picture of its value (convert it to U.S. dollars) – like what you probably do with owned property that is donated. OR
- Your organization could hold on to it with the expectation that it will increase in value – or in crypto speak – HODL it!
- Improve your reputation and brand – your organization will be seen as innovative and forward-thinking. This will also give you a competitive advantage, and that’s always a good thing.
- Donating cryptos can be more tax effective and more beneficial to donors (see above information), which should increase your donations.
- Determine which cryptocurrencies you want to accept. Most likely, your organization won’t want to accept all of them – there’s a large growing list – but maybe focus on just a few of the bigger, more common ones like Bitcoin, Ethereum and Litecoin.
- If needed, work with an experienced professional or organization to help you and your team get started with accepting crypto donations.
- Set up an account – after researching the apps and/or wallets accessible. There are many easy-to-use platforms available.
- Integrate the acceptance of crypto donations into your donation landing page on your website.
- Launch it! Announce it!
- Send out a press release, social media posts, emails, etc. And certainly make sure the crypto community knows about it.
- Did you know that there are lower transaction fees (than most credit cards), shorter processing times—and transparency of payments when using cryptos?
- Use more of the donations for fulfilling your organization’s mission.
There is really no downside for non-profits to accept cryptocurrencies.
For both inexperienced crypto donors and non-profits that haven’t started accepting cryptocurrency donations yet: It can be stressful diving into something that’s new where there are many unknowns in a volatile market, but together, we are working towards driving adoption and mainstream acceptance, and this is something we can do together to move the needle—and do some good in the world.
Regardless of your decision regarding donating cryptocurrencies or accepting cryptocurrency donations: Keep donating, keep being generous (with your time and money), keep doing great work supporting exceptional missions AND keep being awesome.
Special Notes:
- The IRS treats virtual currency (cryptocurrency) as non-cash property.
- Do your own research.
- Consult with your tax/financial advisor for specific guidance and advice.
| Important Information Regarding Crypto Donations Donors: Find Non-Profits/Charities That Accept Cryptos as Donations Non-Profits Interested in Accepting Crypto Donations: Learn More What is #BitcoinTuesday? #BitcoinTuesday is the biggest day for giving cryptocurrency to charity organized by The Giving Block. Nonprofits worldwide are participating—working with crypto donors looking to make a difference. #BitcoinTuesday is on November 30, 2021. Learn more here. |
*This is not financial advice.
References/Related Articles:
- https://wagenmakerlaw.com/blog/virtual-currency-gifts-should-nonprofits-accept-bitcoin
- https://www.thegivingblock.com/
- https://www.devex.com/news/how-nonprofits-are-navigating-the-rise-of-cryptocurrency-giving-99925 (Good quote: ““When key people in crypto and key companies in crypto get philanthropic, it drives crypto adoption.”)
- https://www.nptechforgood.com/2019/08/22/5-reasons-why-your-nonprofit-should-embrace-cryptocurrency/
- https://youngandtheinvested.com/cryptocurrency-statistics/
- https://evergive.medium.com/9-reasons-why-nonprofit-should-accept-cryptocurrency-donations-c2767daa4321
- https://www.hebergementwebs.com/blockchain/why-and-how-nonprofits-can-and-should-accept-cryptocurrency-donations
- https://www.savethechildren.org/us/ways-to-help/ways-to-give/ways-to-help/cryptocurrency-donation
This article was published on July 21, 2021, on Bitcoin Ben’s website (http://bitcoinben.io).
Kelly Wisness-Semchee has spent 20+ years in marketing and communications for various companies, including 13 years in healthcare specifically. She holds a bachelor’s degree in Public Relations and an MBA. Kelly has been married to “Bitcoin Ben” for nearly 12 years. They reside with their fur babies “Litecoin” Little and Lacie and daughter Alexa in the St. Louis area. Learn more at https://www.linkedin.com/in/kwisness/.
Copyright © 2021 by Kelly Wisness-Semchee