Charitable Organisations Increasingly Receiving Donations in Cryptocurrency

Charities are increasingly accepting of cryptocurrencies as donations. This potentially exposes them to the same level of risks and rewards as those investing in the space.

Charities Take Cryptocurrency Risk Giving Wealthy Donors Tax Breaks

Thanks to nuances in U.S. tax legislation, many individuals that have been newly enriched by cryptocurrency are favouring making donations to charity in cryptocurrencies.

By giving assets rather than hard cash, donors can get deductions on their tax returns along with the bonus of not having to pay the government for the capital gains made.

The meteoric rise of Bitcoin and other cryptos over the last few years has meant that many individuals are sitting on massive capital gains. The above bonuses incentivises them to donate the digital assets themselves to the charity, rather than converting them to fiat and writing a cheque.

Perhaps the biggest holder of cryptocurrency donations is the Silicon Valley Community Foundation – an organisation that…