Donating crypto: an impactful way to support causes you care about

With Bitcoin hitting a record high recently and other tokens rising too, now is an ideal time to consider how you can leverage cryptocurrency to achieve your giving goals.

Donating crypto can not only be an easy way to support issues you care about, but can enable you to give more than you'd otherwise be able to.

Why crypto is a fantastic asset to donate

Maximize your philanthropic funds

In the US, donating long-term appreciated assets like cryptocurrency and stock is one of the most tax-efficient ways to give. Generally, if you have held the asset as an investment for more than 1 year, you can:

• Pay no capital gains tax on the appreciation
• Deduct the full fair market value of the gift if you itemize donations (up to 30% of your adjusted gross income with a 5-year carryover)
• As a result, give as much as 20% more to the organizations you care about than if you’d donated the after-tax proceeds

Likewise, in the UK, donors may avoid paying capital gains tax on crypto donations.

To bring this to life, check out the following example from our partners at the Giving Block. Visit their website to find out more about reducing your tax burden with crypto donations in the US.

Source: The Giving Block.

Take the hassle out of giving

Thanks to Donor Advised Funds, giving crypto is easy. DAFs are uniquely placed to accept non-cash assets that most nonprofits cannot take directly, including cryptocurrencies.

How to donate crypto with a Founders Pledge DAF

To find out more about supporting the causes you care about by donating crypto, contact your Community Manager or get in touch.

Founders Pledge cannot provide tax advice and the above does not constitute tax advice. Please consult with your tax or financial advisor for a full understanding of what donating crypto and using a DAF means for you. The tax deductibility of donations can vary according to different factors, including the unique circumstances of each individual.