Cryptocurrencies are gaining momentum. They are perceived as a hedge against inflation and a digital and secure way to store value. Savvy investors consider crypto a safe and promising option for diversifying portfolios. Over the past year, the global appetite for crypto investments spurred a spike in demand raising prices to all-time highs. Today, the market value of all cryptocurrencies is above $1 trillion, larger than a corporation like Facebook or Tesla.
Crypto’s growing acceptance and deep market penetration encouraged non-profits to begin accepting donations in cryptocurrency. This new way of giving proved popular. In fact, last year people donated over $300 million in cryptocurrency (mostly Bitcoin) to nonprofits in the US. Realizing the significance of crypto donations, FINCA recently launched a donation page for crypto.
Just like other forms of giving, donating crypto has unique tax benefits. Like stocks, cryptocurrencies are classified as property. Donors incur no capital gains tax on their donations and get a fair market value deduction. And since many cryptocurrencies, most notably Bitcoin and Ethereum, have experienced rapid value appreciation in the past year, capital gains can make up a substantial portion of an investor’s assets. In sum, the after-tax value of cryptocurrency donations will go further in supporting FINCA’s mission and work in the field.
Donating cryptocurrency to FINCA is quick and easy. Through our partnership with The Giving Block, we accept more than two dozen cryptocurrencies. Your contribution will immediately support our mission to empower women, advance financial inclusion, and provide access to basic services in over 40 low-income countries. Furthermore, donating your cryptocurrency may reduce your annual income tax burden.
For further information about donating cryptocurrency to FINCA or to make your own cryptocurrency donation, please visit: Donate Crypto (Bitcoin, Ethereum, and many more) | FINCA