Unlocking the Power of Cryptocurrency Philanthropy
As the world of digital currencies continues to evolve, a growing number of investors are discovering the benefits of donating their cryptocurrency to charity. Not only does this generosity support worthy causes, but it also offers a unique opportunity to maximize tax breaks.
A Surge in Crypto Donations
According to Kyle Casserino, vice president and charitable planning consultant for Fidelity Charitable, the number of cryptocurrency donations has skyrocketed in recent months. In fact, Fidelity Charitable has accepted an astonishing $688 million in crypto donations through November 19, 2024, compared to just $49 million in all of 2023 and $38 million in 2022.
The Tax Benefits of Crypto Giving
So, why are investors flocking to cryptocurrency philanthropy? The answer lies in the tax benefits. By donating appreciated assets like cryptocurrency or stocks, individuals can avoid triggering capital gains taxes, saving both themselves and the charity money. As Andrew Gordon, a tax attorney and certified public accountant, explains, “It’s generally better to donate profitable assets rather than cash.” By doing so, donors can deduct the asset’s fair market value, up to 30% of their adjusted gross income for public charities.
The Rise of Crypto Philanthropy
Fidelity Charitable is not alone in its acceptance of cryptocurrency donations. DAFgiving360, formerly Schwab Charitable, has also seen a significant increase in non-cash asset contributions, including crypto and stocks. In fact, a staggering 56% of the top 100 U.S. charities now accept crypto donations, according to The Giving Block.
Maximizing Your Impact
As the value of bitcoin and other digital currencies continues to soar, the benefits of cryptocurrency philanthropy are clear. By donating your crypto assets, you can make a real difference in the world while also reaping significant tax rewards. So, why not consider joining the growing ranks of crypto philanthropists and unlock the power of cryptocurrency giving?
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