Those who are passionate about giving and looking to donate cryptocurrency, as well as organizations that are motivated to operate more efficiently will especially appreciate cryptocurrency as a means of giving. Here are some of the main benefits of making a cryptocurrency donation using Bitcoin or other cryptocurrencies.
As Bitcoin and other cryptocurrencies become more commonplace and widely used, the desire to grow their functionality and acceptance increases. There are now hundreds of blockchain companies that provide the infrastructure that is needed to make cryptocurrency a viable means of transaction between people and businesses. Charity is a sector that has likewise been influenced by this shift in how we transact value. There are many benefits to conducting charitable donations through cryptocurrency.
Lower your cryptocurrency capital gains taxes by donating Bitcoin and other cryptocurrencies to charity.
One of the main reasons people donate cryptocurrency is that there is a clear tax benefit in doing so. Donations to nonprofit organizations are tax-deductible and can save you money come tax time. In this way, you are not only able to provide benefits to the organization that you are donating to, but you are also able to enjoy some benefits yourself. The IRS classifies cryptocurrency donations as property, meaning if you donate cryptocurrency to a 501(c)(3) nonprofit like Salute Veterans, your donation is not subject to capital gains tax and is tax deductible to the fullest extent permitted by law. *As with any donation, please consult with your personal tax advisor. Any anonymous donations do not receive a tax receipt.
Faster Use of Funds
One of the main benefits of using cryptocurrency and accepting cryptocurrency as a donation is that the organization receiving the funds will be accessible sooner. With credit/debit or ACH payments, the organization receiving the funds will sometimes have to wait days for a deposit to their bank account. Cryptocurrency, on the other hand, will confirm a transaction within minutes of it being sent and provide the organization with the ability to use the funds almost immediately.
With some organizations, the speed at which the funds are usable is highly important. For organizations that deal with emergencies or urgent situations, this can be the deciding factor between achieving the mission and just missing the target. For any organization that needs funds quickly to act on urgent matters, cryptocurrency is a great option that will increase the efficiency and effectiveness of operations and initiatives.
For any organization or business, accepting payments comes with a cost. Payment processors that process regular payments charge a fee of up to 5% for payments made to the organization before they will have access to those funds. While using cryptocurrency, the fees that will incur from a transaction are minimal and minuscule when compared to the cost of accepting traditional forms of currency.
If your organization or the organization that you are donating to values having more funds to do the things that really matter and believe that more good things can be done without the exorbitant fees of traditional payment processors, then cryptocurrency is a great choice as a payment option.
For some people, an act of charity is not complete unless there is an element of anonymity. If you prefer to remain anonymous during your charitable giving, then cryptocurrency is really the only option that you have. With other donations, you will likely be required to provide personal information to complete the payment to your organization of choice.
With cryptocurrency, all you need is a wallet and an address to send to. You won’t need to tie any personal information to your donation, nor will you need to provide any credit card information. If you prefer that your donation remains anonymous and you just want to contribute to your favorite charity, then cryptocurrency is the right option for you.
Wider Range of Donors
As an organization, accepting cryptocurrencies can help to not only make donations easier and more affordable but also can help to increase the amount of donation revenue that your organization produces. When you enable cryptocurrency payments for your organization, you’ll be gaining access to a much wider range of donors.
People all over the world use cryptocurrency, and those who want to be charitable but are having trouble finding a way to use their preferred currency are limited as of now. However, if more charities choose to accept cryptocurrencies, these donors may be more motivated to give charitably.
Easy International Transactions
Some organizations are limited by international borders because of the payment processors that they use. In addition, currency conversions are often expensive, difficult, and confusing for the end customer. Likewise, if you are a person who wants to donate to an international charity that resides in another country, you might be finding it difficult or confusing. Cryptocurrency helps to eliminate that problem and enable people to donate to any charity that they want.
Since cryptocurrency is tied to no country, in particular, residents from any country can use the currency and transact payments across the world effortlessly. Better yet, there are no currency conversions or other confusing processes that need to occur in order to make the payment.
With traditional payment methods, we have little or no insight as to how the money we donate is spent. With cryptocurrency, this issue is somewhat improved. Since cryptocurrency operates on a public ledger, every transaction that occurs on it is recorded. This means you can monitor the balance and transactions of the address that you donate to in order to have some insight as to where the money is allocated.
If you value transparency in your charitable organizations, then using cryptocurrency is one of the best options that you have. With cryptocurrency, you can feel better about your charitable organizations, knowing that the money you donate is used for that purpose.
If you are donating to a charitable organization, using cryptocurrency can benefit the cryptocurrency community and movement by driving adoption. By using cryptocurrency to donate to a charity, you are sending the message that catering to the cryptocurrency industry is desirable. Charities will get the message that people desire to transact using cryptocurrency and more charities will be driven to accept them. With more payment options being highly publicized, continuing to donate to charities with cryptocurrency can help to drive the mass adoption of cryptocurrency.
If you truly want to see cryptocurrency grow, gain users, and gain more accepting organizations, then donating and transacting with cryptocurrencies is the easiest way to do your part in helping to make it happen.
Recap – Why Donate Cryptocurrency?
Cryptocurrency is growing in popularity and use, but it’s not a project that only advances capitalism and the economy. This growing technology also affects charitable giving and could vastly improve the process of charitable giving, when used correctly. If you are an organization or an individual looking to donate, please consider Salute Veterans when donating your cryptocurrency as a way to accomplish your mission more efficiently.
We are making it even easier for you to donate Bitcoin, Bitcoin Cash, Ethereum, Litecoin or USD coin to Salute Veterans Inc. For donors in the United States, the IRS has classified cryptocurrencies as property for tax purposes. This means that when you donate Bitcoin or other cryptocurrencies to a 501(c)(3) nonprofit like Salute Veterans Inc, you aren’t required to pay capital gains tax and that amount can be written off on your taxes.
Donating your cryptocurrency to Salute Veterans Inc is a win for the donor and a win for Veterans. Your cryptocurrency donation will be valued at the time of donation at its fair market value, and you will receive a larger tax benefit because the entire FMV of the donation can be deducted. As a 501 (c) (3) organization, Salute Veterans Inc. is tax-exempt (EIN: 84-2016237) and will receive the entire amount of cryptocurrency and ultimately a larger gift.
After making your cryptocurrency donation, email us at firstname.lastname@example.org so we can record your gift and send a tax receipt. In accordance with our gift policy, all donations in cryptocurrency are final and non refundable.
Donate Cryptocurrency Today!
We currently accept Bitcoin, Bitcoin Cash, Dai, Litecoin, Ethereum and USD Coin. All cryptocurrency donations support worthy Veteran’s causes and are very appreciated!
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)).
- 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