When you think of cryptocurrency, your mind might automatically turn to what can be gained by investing in cryptocurrency and what financial gifts might come to you. Cryptocurrency has proven to be one of the most powerful wealth generators that the world and the global economy has ever seen, but it has also been one of the most powerful vehicles of charitable giving in modern history. As much as cryptocurrency has unlocked the potential of limitless cross-border payments and online commerce, it has also enabled those from around the world to contribute more easily, securely, and discreetly to the charities and causes that they care about. One of the most prevalent examples of the remarkable philanthropy that cryptocurrency’s rise has enabled is the Pineapple Fund.
Bursting onto the scene in 2017, the Pineapple fund is perhaps the most generous cryptocurrency charitable fund to ever exist. In addition to helping thousands of people across the globe and contributing millions of dollars to hundreds of causes, it also served as one of the most interesting charity case studies to ever exist, and gave us more insight as to how cryptocurrency could be used as a charitable vehicle to affect positive change.
The Story of the Pineapple Fund
If there’s one thing that we all know about cryptocurrency and its meteoric rise in price, it’s that it has made thousands of people incredibly rich in an extremely short amount of time. One such case is that of an anonymous user by the name of “Pine”. This anonymous user was considered a cryptocurrency “whale” that was one of the top 250 cryptocurrency holders in the world. With a fortune of many millions of dollars worth of cryptocurrency, “Pine” announced his/her intentions to give away the bulk of their bitcoins to charitable causes.
Over the course of the next several weeks, Pineapple Fund accepted applications from dozens of charities seeking funding for their causes, and many of those applications were approved, funneling millions of dollars worth of bitcoin to foundations all around the world.
Opening Eyes Around the World
The benefits of the Pineapple Fund and the positive effects of the fund were felt strongly around the world, but the real benefit to the charitable giving of the Pineapple Fund was the exposure of Bitcoin to charities around the world. For many of the charities and foundations that received bitcoin from the Pineapple Fund, it was the first time that they had been exposed to cryptocurrency. Cryptocurrency, as a result, came onto the radar of charities around the world and began to be appreciated as one of the best ways for people to give to the causes that they care about.
With increased exposure to bitcoin, a new age of philanthropists was created and there have even been entire cryptocurrency projects centered around the concept of giving with cryptocurrency and using the benefits of digital currency to affect positive change. This change in the landscape of cryptocurrency and charitable giving has had a ripple effect throughout the world and played a large part in bringing cryptocurrency to the masses.
Benefits of giving to charities with cryptocurrency
When it comes to donating cryptocurrency, there is a reason that so many people choose to funnel their charitable giving through digital assets. In fact, there are many reasons. However, these reasons were not necessarily known before the establishment and disbursement of the Pineapple Fund. One of the most amazing accomplishments of the Pineapple Fund is that people around the world started to realize the benefits of cryptocurrency to charitable giving and the culture of giving that many cryptocurrency philanthropists have developed.
While many charitable organizations are created with the best intentions in mind, there are often clear inefficiencies and misuse of funds running rampant throughout the world of charitable giving and organizations. The blockchain helps to solve this problem. With a public ledger recording each transaction, it has become possible to track your exact crypto donation to the recipient and gain some insight as to how the funds were used. Charitable giving with Bitcoin and other cryptocurrencies has helped to reduce the amount of distrust in the charitable giving sector.
In addition to the trust and verification factor that donating with cryptocurrency has to provide, the events of the Pineapple Fund and how the funds were distributed also opened the eyes of anyone that likes to transmit donations to their favorite charities with security, safety, and privacy. With the ability and capability to donate cryptocurrency to your favorite charities, organizations and donors can now bypass traditional payment processors which are often insecure, unsafe, and don’t provide privacy to both parties. It also avoids high fees that detract from the amount of good that you are able to accomplish with your donation.
The results of the Pineapple Fund
When all was said and done with the Pineapple Fund in 2019, the individual that was responsible for establishing the Pineapple Fund had donated nearly $55 million worth of BTC to various emerging medical treatments, charities, and research projects. It is the largest coordinated cryptocurrency philanthropy project that the community has ever seen, and has paved the path for future similar charitable acts.
General Information & Disclaimers
- If you’re donating over $500 worth of cryptocurrency and want to take advantage of the tax deductions, we are happy to sign an IRS Form 8283 for you. Please email us your info.
- If your Cryptocurrency Donation is over $5,000 in value and you want to qualify for a tax deduction, you will need to work with a Qualified Appraiser (See 26 US Code 170 (f)(11)(c)).
- We can only accept cryptocurrencies for donation purposes and all donations are non-refundable.
- IRS Section 1.170A-13 – “Record keeping and Requirements for Deductions of Charitable Contributions”
- IRS Publication 561 – “Determining the Value of Donated Property”
- IRS Notice 2014-21 – IRS Virtual Currency Guidance