Philanthropy platform The Giving Block is launching the Crypto Giving Tuesday initiative on Tuesday, November 30, according to a statement sent to Bitcoin Magazine. The campaign will take place on the same day as the world’s most prominent day of global generosity, Giving Tuesday, to connect bitcoin donors with nonprofits across various sectors.
The Giving Block facilitates nonprofit organizations’ experience in receiving donations in bitcoin and other cryptocurrencies. Philanthropic investors can browse and contribute to the cause they identify more with by sending direct bitcoin donations rather than converting the desired amount to fiat currency and donating that instead. Donors can avoid capital gains taxes from the sale of cryptocurrency and enable a bigger donation to reach the nonprofit, a win-win for both parties.
“People can avoid giving proceeds to the IRS by donating that money directly...to charity,” the statement said. “For example, if an investor chooses to donate based on assets they have recouped, takes $10,000 in Bitcoin and cashes out to donate, they will get the write-off, but pay capital gains tax on the $10K (as much as 20%). If the same investor donates the $10K in Bitcoin directly to a nonprofit, they still get the write-off, but there’s zero tax to be paid.”
There are currently over 700 nonprofit organizations on The Giving Block’s platform, and the company expects over 1,000 organizations to participate in the campaign this year, almost ten times more than in 2020.
Crypto Giving Tuesday can also serve as an inexpensive pilot program for nonprofits interested in accepting bitcoin donations. If they have a successful campaign, they can present their results to their leadership to push the Bitcoin agenda more easily. And for those worried about their precious bitcoin stack, they can enforce a virtuous cycle while purchasing back the same amount of BTC instantly after donating, which is also tax efficient.