The Justice Love FoundationIncrease your gift to the Foundation—and your tax deduction—with a simple strategy. Contact our Team for additional assistance.
Donating bitcoin and other crypto currencies to The Justice Love Foundation
How donating bitcoin and other cryptocurrencies directly to the Foundation increases the size of your gift
Why Selling your bitcoin to the Foundation has benefits
Before you sell bitcoin and donate the after-tax proceeds, consider donating your bitcoin directly to the Foundation. This action includes two significant benefits, both for you and the charity:
Your tax deduction will be equal to the fair market value of the donated bitcoin (as determined by a qualified appraisal).
Your gift to charity will be larger because instead of paying capital gains taxes, the Foundation, a 501(c)(3) charity will receive the full value of your contribution.
There’s another upside to donating bitcoin to the Foundation, the opportunity to recommend how the contribution is invested and potentially grow, is ultimately is part our providing for a greater charitable/philanthropic impact.
How does it work?
It’s simple and easy.Contributing bitcoin to the Foundation means your tax deduction and your charitable gift may instantly increase over 20%. Charities are exempt from paying capital gains on the sale of assets, so the full value of your gift stays intact.
This assumes all realized gains are subject to the maximum federal long-term capital gains tax rate of 20% and the Medicare surtax of 3.8%. This does not take into account state or local taxes, if any.
Amount of the proposed donation is the fair market value of the appreciated property held more than one year that you are considering donating as determined by a qualified appraisal.
Assuming a contribution of 100 bitcoin. The tax basis is assumed to be $100/bitcoin. If you sold 100 bitcoin for $325,000, he would have $253,600 in capital gains and would pay $71,400 in tax.
Make the most of your bitcoin
Bitcoin is a cryptocurrency and isn’t managed by a bank or agency but in which transactions are recorded in the blockchain that is public and contains records of each and every transaction that takes place. The cryptocurrency is traded by individuals with cryptographic keys that act as wallets.
In recent years bitcoin has more than appreciated to twenty-five times it’s value, selling bitcoin now, typically incurs capital gains taxes on the appreciation because of the holding period and for investment purposes. A holder of bitcoin can make an acceptable bitcoin donation to the Foundation.
Maximize Your Charitable Giving
You can make a contribution of bitcoin in-kind, to the Foundation, as opposed to selling the bitcoin and donating the after-tax proceeds. Because the Foundation’s tax-exempt status, we can sell the bitcoin without having to pay capital gains tax. In addition, any non-charitable owner would generally be entitled to claim a fair market value tax deduction for the contribution. By contributing shares to the Foundation, we are able to eliminate the capital gains tax exposure and take a charitable deduction in the amount of the fair market value of the shares, making the donation greater than an individual’s sale.
Reach Rewarding Results
Due to these tax efficiencies, giving increases the charitable use.
Giving bitcoin and other cryptocurrencies is Simple, Effective, and Accessible
By contributing bitcoin to the Foundation you can lessen your capital gains exposure and claim a higher tax deduction than if you sold the bitcoin and donated the after-tax proceeds.
Donating bitcoin or other crytocurrencies to our Foundation: It’s an excellent choice
- Provide more money to charities
- Minimize capital gains tax exposure
- Take a tax deduction
Let Our Donations Team Assist with a Plan
Nearly half of high-net-worth donors do not take advantage of tax-saving methods that could help them save and give more. Let our Donations Team help you with the opportunity to position yourself by having a quick conversation on the best structure for charitable giving to the Foundation. Please take your time and submit your questions below, we will respond as quickly as possible.
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