Make more good possible: Consider giving appreciated assets like crypto 

When we look back, 2024 will be remembered for many things, including a significant run-up in asset values. As of November 20, 2024, the S&P 500 has grown nearly 25% year-to-date (YTD), and the Nasdaq has increased in value nearly 28% YTD. But those returns look paltry compared to the leading cryptocurrency, Bitcoin, which has grown more than 140% in value YTD. 

While these large gains in value are good for the asset holder’s balance sheet, they can lead to a larger tax bill when the assets are sold, and long-term capital gains are realized. That’s why it’s advantageous to use highly appreciated assets like stocks and (especially now) cryptocurrency to fund your charitable giving plans. 

You’ve probably heard this advice before, but where does the advantage come from? 

When the owner of long-term assets (those held more than a year) sells them, they convert “paper gains” into cold, hard cash. However, the transaction also triggers long-term capital gains tax on the increase in value of the asset. The long-term capital gains tax rate in 2025 can be as much as 20%, meaning only about 80% of the asset’s value will remain in the owner’s pocket. 

When long-term assets are used to fund charitable contributions, this tax bill can be avoided. Donating assets to a donor-advised fund (DAF) or giving them outright to a qualified nonprofit does not trigger capital gains taxes because the recipient of the asset (the entity “realizing” the gains) is a tax-exempt organization. That means 100% of the asset value can be used to fund a DAF or support the important mission of the recipient organization. 

By using highly appreciated assets for charitable giving, you can avoid a capital gains tax bill and make more good work possible. Given the recent meteoric rise in cryptocurrency values, this could be the perfect time to unlock those gains and leverage charitable giving to improve lives.  

The Community Foundation for Greater Atlanta is equipped to quickly and easily accept gifts of dozens of different cryptocurrencies before the end of the year. If your client is sitting on huge crypto gains, this could be a smart strategy to avoid capital gains taxes and get a jump-start on long-term charitable ambitions. 

Contact Josh Dukelow at 404.588.3208 or jdukelow@cfgreateratlanta.org to learn more about using cryptocurrency to fund your client’s charitable plans and make more good possible in Atlanta.