#BitcoinTuesday: Tax Deductible Crypto Charity on International Day of Giving
A crypto-focused charity organisation has declared today #BitcoinTuesday in an effort to promote the perks of donating cryptocurrency to non-profits. The initiative is the work of TheGivingBlock, with sponsorship from several notable blockchain-related companies.
Cryptocurrency donations, being considered as property, are not subject to capital gains and are tax deductible. This can make digital assets a more effective way to contribute to charitable causes.
Crypto Companies Promote #BitcoinTuesday Charity Initiative
The crypto space now has its own version of #GivingTuesday. The aptly-titled #BitcoinTuesday initiative calls on the cryptocurrency community to donate a portion of their holdings to charitable causes following the commercialism of the trifecta of Thanksgiving, Black Friday, and Cyber Monday.
For those that don’t know, #GivingTuesday is a movement promoting the giving to charity during the holiday season. It was started in 2011 by the non-profit organisation Mary-Archie Theater Company and falls on the Tuesday following the US Thanksgiving. It originally began on the Monday after the holiday but was moved to the following day so as not to clash with the online retail sales event Cyber Money.
Inspired by the growing success of the now international event, crypto startup TheGivingBlock created its own version, known as #BitcoinTuesday. TheGivingBlock is a company that removes as many of the barriers to donating Bitcoin and other crypto assets to non-profits as easy as possible.
Several large cryptocurrency firms are involved in the initiative. These include Brave, BottlePay, CoinTracker, and Gemini. Firms sponsoring #BitcoinTuesday are not only encouraging their users to donate digital currency to the charities working with TheGivingBlock but also by running their own promotions. For example, the major crypto trading venue Gemini will be donating part of the trading fees it makes today to the charitable causes already signed up to TheGivingBlock.
A Medium post by Gemini’s Sales and Relationship Management, Kristen Mirabella, explained how the exchange was part of the charitable startup’s actual donation process. Gemini is responsible for the conversions of donations in Bitcoin, Ether, and other supported currencies into fiat currencies.
Trade to Give! By trading on Gemini today you automatically participate in #GivingTuesday! We will directly donate a portion of today's trading fees to @TheGivingBlock's #BitcoinTuesday initiative!
— Gemini (@Gemini) December 3, 2019
Given the legal status of cryptocurrency in the US and other jurisdictions, those behind #BitcoinTuesday are hoping that the fintech innovation will prove a popular way to donate to charities. Crypto assets are treated as property and, therefore, donating them to registered non-profits does not incur capital gains taxes. Additionally, you can often deduct the fair market value of the assets from your tax return. The amount you’re entitled to deduct does depend on your annual income, the amount of time you held the crypto for, and the value of your donation. If you’re wanting to take advantage of the favourable legislation surrounding crypto donations, ensure that you consult a qualified accountant.
Already working with TheGivingBlock is a long list of established international charities. These include Save the Children, Human Rights Foundation, Trees for the Future, Code to Inspire, and Canine Therapy Corps.
Related Reading: Leading Medical Charity Exploits Cryptocurrency Tax Status by Accepting Bitcoin and Others
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