Donation to charities


#1

Looking at donating to some charities and organisations this time of year, but they don’t accept crypto. I would love to donate using bitcoin, etherium and safecoin and I think many holders would too. I think all crypto will only increase, and it’s a great donations stream and much better than a just giving account.

For example, one well known charity.

Why don’t they have crypto public addresses?

How would you go about convincing them to accept maidsafe/safecoin and others?

Edit: just sent them an email. Will let you know what they say. Only mentioned bitcoin though, one coin at a time.

I think a non profit crypto consultantcy for charities is needed, it’s not difficult to set up wallets and sell for fiat, they just need to be shown.


#2

Massive shame. They, and probably others, think you need to pay for an IT guy to take these payments. With the right guidance their finance department could take these donations at no extra cost. :frowning: Should I reply again?

I could send a link to this thread if anyone has advice for them?

Thank you for contact Macmillan and for your great suggestion about crypto currency.

Whilst we agree that this would be a wonderful addition to our service. The costs involved in setting this up at Macmillan are prohibitive. We would always choose to spend our funds on people living with cancer rather than IT. At present the number of people who would choose to use this option would be minimal and therefore this would not be a cost effective option


#3

Ok… Well. I’ve volunteered my services. I can advise them on creating crypto addresses, important stuff of backing up , restoration, changing coins to fiat. Hope to visit their HQ, am only in the UK for a short while.

Anyone here with further advice, more than your typical user of crypto which I am.

I think bitcoin only for now, more currencies once they are confident, maybe safe coin once it’s launched also.

We shall see if they agree.


#4

Maybe there are reputable companies who will handle this for them? All they need is somebody to handle all the crypto, and to add this option to their website. This route would cost them very little, and if it doesn’t pay for itself they can drop it.


#5

I had been considering working on a service to do just this.
Im no coder. Just a long time crypto junkie.

I spk to my accountant next week so ill bring this up.

I do have a concern it may make me a " money transmitter " meaning hoops to jump through.


#6

The compliance and regulatory angles may be scaring them off at this stage. Donations in crypto, exchange for fiat and the audit trails for their independent auditor.


#7

Probably this.

Got my message to the finance department, was willing to train them for free and be available on call for any questions throughout the year but it’s not a technology they want to use at the moment. Bit of a shame.

Let see, maybe in the future.


#8

I was actually doing some research into this about a month or so ago for a school paper, and one of the issues faced here in the US is how to value any cryptocurrency for purposes of donation. Trying to figure out how and when to value it isn’t the most streamlined process right now, and accurately valuing it at any given time is something of a juggling act (though there are some tools out there making this significantly easier to track for the average person).

Really, it seems like the biggest issue is how to handle it from the donor’s perspective. Does the donor themself provide the valuation? This could lead to issues like what was happening for a while with used car donations soon after KBB and similar sites came out. About the only way that I think this could be dealt with would be for the organization to send the valuation to back to the donor, but then how do you handle anonymous donations? Will they simply not be able to claim it on their taxes?


#9

I would think it should work exactly as it doeswith any asset.

When transferred to the charity you would fetch a price by looking at current mkt value.

When they sold they would calculate if they owed any extra in capital gains.

Same as anyone who trades.


#10

Yes but unless it’s all automated for them, they will find it difficult. Charities are mostly run by volunteers with limited financial nous


#11

A number of charities are starting to get onboard with crypto. I run slavefreetrade.org, a Swiss NGO working to use blockchain to eradicate modern slavery in supply chains. Millions of people are enslaved, killed, and injured making the things we buy. More than 168 million children are in dangerous child labour as we speak. There are this moment more people in slavery globally than across all 315 years of the trans-Atlantic slave trade.

We provide digital identity to all workers in supply chains, communicate with them in real-time to determine their conditions, rate workplaces according to the aggregated results, remediate problems as they arise, communicate that supply chain history with products on shelves. We are building a B2C app so consumers can find slave-free products, and view everything they want to about the background of the product, and a B2B app so ethical businesses can find ethical sources. It is huge. And revolutionary.

It is perhaps only, though, because of our strong blockchain development focus that we accept donations in ETH and BTC. I think mainly huge charities, and those working with blockchain to fix social impact issues, are crypto-ready. If you or friends like to become a part of our mission, you can give at slavefreetrade.eth

And we also operate as our friends at Giveth and Swarm City: like a swarm. So we accept volunteers from all over the world who just want to help out. DM me if anyone is interested in helping build this exciting project and free people from forced and child labour.

We need tech skills, but also social media, graphic design, communications etc.


#12

There is good news for you. Donations of crypto to charities can be leveraged for your tax advantage. Here is the best example I have seen about how it would work if you live in a place that will start/has started taxing crypto:

“Donating cryptocurrency to your favorite public charity can help you save taxes on the coins you do sell. The charity gets a large donation, and you get a larger deduction, if you donate the coins to a charity instead of selling the coins and donating cash. Let’s say you sell coins that result in $1,000,000 of gain. Your approximate tax on that gain will be about $238,000 leaving you only $762,000 to donate to the charity. Instead, when you gift the coins to charity, you get a charitable deduction of $1,000,000 and the charity gets $1,000,000 tax-free when it sells the coins since it’s not subject to income tax. Since you’re charitable deduction for gifts of appreciated property is limited to 30% of your adjusted gross income (AGI), you should have sold coins resulting in at least $3,333,333 of gain in order to use the full deduction amount this year. If your deduction amount exceeds 30% of your AGI, the remaining amount will be carried over and deductible in future years. Be sure to donate coins you’ve held for at least a year, though, because if you donate coins held short-term, your deduction is limited to your very low cost basis.”


#13

It does not cost anything to set up. We have our own crypto wallets for donations. It is simple. Any charity that thinks it takes extra funds towards IT and away from progrmames simply has no idea what they are talking about.


#14

In Australia charity donations are deductible

So if you get 1,000,000 (profit) from the crypto and then donate $1,000,000 fiat to charity then you get 1,000,000 taken off your taxable income. It does not matter which way you do the donation, in crypto or fiat assuming they were trading with the crypto and not holding.

Also if the person was purely holding from purchase to cashing out after 1 year then the crypto cash is tax with CGT and only 50% of it is added to the taxable income. Without any donations the tax on 1,000,000 is based on 500,000 only the other 500,000 is tax free under CGT This would mean that the person could cash out 4,000,000 and the taxable income is 2,000,000 and then if they donated 1,000,000 fiat then the taxable income is 1,000,000 only and that is like $450,000 tax in Australia. Thus the person keeps $2,550,000 from the 4,000,000 and has donated 1,000,000

If they donated 1,000,000 in crypto and cashed out 3,000,000 then they would be paying tax on 1,500,000 and that is about 700,000 tax. Thus the person keeps 2,300,000

So in Australia if the person has held for over a year then its cheaper to cash it all out and pay in fiat to the charity rather than pay in crypto.