2020: Nonprofits fall in love with Bitcoin?
Microsoft accepts Bitcoin. No one cares. why? Because if you want people to give up their bitcoin, you better have a good reason. Microsoft and other companies that accept BTC have no such reason.
When you use BTC to buy something from Microsoft, using this payment method does not have any extra financial benefits than using a credit card, especially in the United States, shopping with BTC is a tax nightmare. The typical case of BTC against fiat currency is usually about encouraging more merchants to accept BTC, but in many cases, this incentive is for many "hospitals" (HODLers-long-term holding of a certain crypto digital currency regardless of the currency price change Are not strong enough.
Nonprofit organizations are a completely different story. Donating BTC is not taxable. Not only do you not have to pay capital gains tax, you can also write off the tax on your tax return. In addition, donations have the added benefit of expanding acceptance because they also have a strong army of social media to spread information. This is why it is said that non-profit organizations will lead the use of Bitcoin and other cryptocurrencies in 2020.
Incentive: Nonprofits need to accept Bitcoin donations
Non-profit organizations accept Bitcoin donations. This is the result of the powerful incentive of taxation. Since the IRS classifies Bitcoin as a property, this means that it is similar to donating shares, but in the case of donating with Bitcoin, the process is much easier. It turns out that this motivation is more attractive to Bitcoin than to stocks, because in the past 5 years, Google searches for "donate Bitcoin" have more than "donated stocks".
For donors, when they donate a significant amount of bitcoin to a 501 (c) (3) (Federal Tax Code exemption clause) non-profit organization, they do not have to pay capital gains and can apply to cancel the tax when they pay taxes. For donors or non-profit organizations, Bitcoin donations are not taxed. Depending on the taxation level, people can donate 20-30% more. That's why in the past few years we have seen hundreds of millions of dollars of Bitcoin donations being sent to non-profit organizations, especially during the bull market. Some of these events are sponsored by large donors, such as the infamous Pineapple Fund, which has donated $ 56 million in bitcoin to 60 different charities.
If you plan to donate money to non-profit organizations this year, consider using Bitcoin to donate. If Bitcoin appreciates, this could be a more tax-efficient way to support your favorite cause. In addition, you can change the way you plan to donate fiat currency, repurchase the same amount of bitcoin after each donation, so that you can continuously accumulate bitcoin.
Expression: When non-profits talk about Bitcoin, people listen
Nonprofit organizations often have larger and more active audiences than large companies. Take Save the Children, for example. They have nearly 3 million followers on Twitter and have an annual budget of more than $ 800 million, surpassing most profit-oriented companies. This is why there is increasing interest in large non-profit organizations entering this field. A $ 1 million cash donation is not a big deal, but a $ 1 million Bitcoin donation is a compelling story.
Positive: Nonprofits have started accepting Bitcoin donations
Last year, the number of non-profit organizations that accepted bitcoin or other cryptocurrency donations doubled. You might be surprised by some non-profit organizations that have accepted Bitcoin donations, such as:
Save the Children Pencil Promise Pencils of Promise Mona Foundation Internet Archive Internet Archive No Kid Hungry (aka Share Our Strength) Tor Project Tor Project Future Trees for the Future Freedom of the Press Foundation Heifer International YMCA of St. Petersburg United Nations Children's Fund UNICEF Human Rights Foundation Palm Beach Habilitation Center Us4Warriors United States Lupus Foundation of America Dementia Society of America Responsive to Our Community Junior Achievement of Northern California Liberland Aid Foundation Many Hopes Electronic Frontier Foundation Experience Camps Code to Inspire Rainforest Foundation
Hundreds of non-profit organizations accept Bitcoin donations and actively use Bitcoin and other cryptocurrencies for fundraising.
So when you need to file a tax return, are you willing to pay taxes to the Internal Revenue Service (IRS) or donate to a bitcoin-friendly nonprofit? Donating Bitcoin can reduce taxes. More importantly, this is probably the most important thing you have done to speed up your promotion this year.