Why You Should Use Bitcoin to Support Movieguide®
By Movieguide® Staff
Although the pandemic negatively affected the economy, small businesses, nonprofits, and the everyday consumer, cryptocurrency is a new way to donate to your favorite charities like Movieguide®!
Cryptocurrency, first introduced in 2008, has blossomed into a thriving market with over 100 million users worldwide. Notable leaders in technology such as Elon Musk and other corporations are touting the legitimacy of Bitcoin and other digital currency. PayPal and Visa have also added cryptocurrency to their payment networks.
As its popularity rises, more and more investors are using Bitcoin, Ethereum, and Ripple to donate and invest in charity organizations like Movieguide®. But what are the benefits for you?
As the price of Bitcoin rises, holders are faced with a decision: cash out or risk a “run-up in values” that “result in investors having more exposure toward bitcoin.”
Though longtime holders of the virtual currency are rejoicing, they run the risk of winding up overweight in bitcoin. That is, the massive run-up in values could suddenly result in investors having more exposure toward bitcoin — and its risks — than they’d like.
Similarly, while cashing out of your holdings might seem attractive, it could come with a hefty capital gains tax bill on the appreciation.
However, there is a third option!
Donations and charitable giving offer cryptocurrency investors a way to save on taxes.
“Similar to stock donations, crypto offers a more tax efficient way to donate because cryptocurrency is classified as property. For donors, that means no capital gains tax and a fair market value deduction. That can often mean a 20-30%+ larger donation and deduction. Donating bitcoin directly can benefit both the donor and the nonprofit, by bypassing the capital gains tax,” according to The Giving Block.
“We believe in asset diversification, and because the price of bitcoin rose significantly, investors could be overallocated based on their targets for their portfolio,” Stefan Podvojsky, senior vice president of Fidelity Charitable, said. “A donor advised fund provides a great outlet to remove that overweight and support the philanthropy that is important to the donor.”
“Donating it could be incredibly tax-conducive,” Bryan Clontz, founder and president of Charitable Solutions added. “It’s the holy grail of charitable planning: a low basis, highly appreciated asset.”