Bitcoin is back: Let’s talk crypto-philanthropy

The Community Foundation for Greater Atlanta can accept and liquidate dozens of cryptocurrencies, including bitcoin, and use the proceeds to open or bolster a donor-advised fund or other charitable vehicle. The donor will avoid paying capital gains taxes on the highly appreciated asset and create a resource to fuel future charitable contributions.

How does it work?

Giving crypto to the Community Foundation is easy, and we accept more than 40 different cryptocurrencies. We only ask that you contact us to let us know the gift is coming. We will send you a private, secure page containing a widget where you can enter the details of your gift.

What can it do?

Gifts of crypto can do anything at the Community Foundation that donors might otherwise do with cash. For example, donors can direct the gift to their favorite nonprofit(s), or use the proceeds to start or grow a donor-advised fund (or agency fund to support their favorite nonprofit over several years, or even in perpetuity).

Think of crypto like appreciated securities (aka stocks). The same reasons they make great tools for charitable giving apply to appreciated crypto holdings too. Rather than “cash out” and face a large tax bill, investors can boost their charitable impact by giving the entire value of the assets to charity and avoid the tax consequences of realizing the growth in value.

Why now?

Recently, regulators approved the creation of bitcoin ETFs (exchange traded funds), renewing investor interest in this asset class. Rather than buying/selling coins directly, investors can now access the potential growth in crypto through more traditional investment vehicles. This has brought a new crop of investors to the crypto party, pushing values back around all-time highs.

What next?

Do you know which of your clients invest in bitcoin or own other cryptocurrencies? As part of the charitable giving conversation with your clients, help them understand when and why certain assets are advantageous to use for charitable gifts. Need some guidance? We are happy to help. Call Josh Dukelow at 404.588.3208 to talk more about maximizing charitable impact by using appreciated assets to fund your clients’ giving.