Why Donate Bitcoin to Charity?

by | Jul 24, 2021

Donating cryptocurrencies like Bitcoin is a tax-efficient way to maximize the impact of your charitable giving.

Making a charitable donation using non-cash assets like cryptocurrencies is a tax-savvy investment in bettering the world. Discover the top reasons why to donate bitcoin and other cryptocurrencies to charity.

Why Do People Donate Bitcoin & Other Cryptocurrencies to Nonprofits?

In the last few years, hundreds of millions of dollars worth of cryptocurrencies have been donated to charities, whether it’s large anonymous Bitcoin donations like the Pineapple Fund, to thousands of small individual donations – cryptocurrency donations are on the rise.

With 90% of wealth held in non-cash assets, it’s important for donors to pick the right asset to give. Here are some of the many reasons why individuals and organizations donate cryptocurrencies such as Bitcoin, Ethereum, USDC  and more to nonprofit organizations in the United States and around the world:

Donating Cryptocurrency Is a Tax-Efficient Way to Give

Donating cryptocurrency like Bitcoin to 501(c)3 nonprofit organizations is a highly tax-efficient way to give. Generally speaking, donors in the US, UK, Canada, Australia and New Zealand are not required to pay capital gains tax on appreciated cryptocurrency that has been held for over a year and is donated to a registered charity.

If you have to transfer to another cryptocurrency or to fiat prior to donating, you lose the full tax benefit of donating directly to a nonprofit in cryptocurrency. From a tax perspective, this is very similar to if you were to donate appreciated stocks to a nonprofit.

Since donated crypto assets aren’t subject to long-term capital gains taxes, donating crypto is not just tax-efficient. It also enables donors to give up to 20% more to their favorite charities that they would have otherwise paid in taxes. 

In other words, why donate Bitcoin? Because crypto donations help donors reduce their tax obligations while supporting organizations whose missions they care deeply about.

Donating Cryptocurrency Demonstrates Your Corporate Social Responsibility

Making a financial donation in the form of cryptocurrency is one of the simplest ways that a blockchain or cryptocurrency company can demonstrate its corporate social responsibility and values to the world.

By supporting a nonprofit that aligns with your organization or your founder’s values, you are saying to the world that you care, and you are willing to put your money where your mouth is when it comes to social good. Many organizations like to use the phrase “Blockchain for Social Good.” It’s not just a motto, either. Thousands of people—including many leading figures in the crypto space—are helping to grow the impact of crypto philanthropy.

The power of blockchain and the crypto community to do good in the world shouldn’t be underestimated.

Charles Hoskinson

Donating Cryptocurrency Drives the Adoption of Bitcoin and Other Cryptocurrencies

We think that having ordinary people and organizations accepting and using cryptocurrency is exactly what it needs in order for it to become mainstream. Don’t just HODL, GIVE! 

Crypto philanthropy is one of the best tools our community has to fight against FUD and show the good in crypto. By donating to nonprofits you ensure that they have open cryptocurrency wallets, and are actively engaged with the cryptocurrency community. The more nonprofits that accept cryptocurrency, the more widespread its use will become.

Donating Cryptocurrency to Nonprofits is Quick, Easy & Convenient

Sending cryptocurrency is easier than punching in a credit card. When charities are set up to accept your favorite cryptocurrency, it’s as easy as finding their donation page that hosts a cryptocurrency donation form, filling out your donation amount and using their unique wallet address or QR code to complete the transaction. 

When using The Giving Block to donate crypto, you have the option to receive a tax receipt via email, and you can rest easy knowing you donated your Bitcoin to support a nonprofit whose mission you support! 

The Giving Block Makes Crypto Donations Easy

Why donate Bitcoin and other cryptocurrencies with The Giving Block? Donors use our platform for the same reason that thousands of charities have decided to sign up with us: we offer many options for giving, paired with ease of use, security, and attention to detail that demonstrates our understanding of the crypto community’s values.

From the beginning, our platform has been designed for the modern donor, with features such as:

Thousands of charities on platform
Easy to use donation form
Option to give anonymously
Hundreds of cryptocurrencies supported
Acceptance of stock and card donations
Automatically-generated tax receipt and IRS Form 8283

Click the button below to browse the thousands of charities that accept cryptocurrency donations like Bitcoin.

*The Giving Block are not financial advisors or accountants. For up to date and accurate information regarding cryptocurrency donations and their tax status please consult with your accountant, attorney or financial advisor.

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