Bitcoin Tuesday 2020 promotes crypto by donating to nonprofits

The Giving Block was established in 2018 by founders Alex Wilson and Pat Duffy. The pair had seen that large amounts of Bitcoin was being donated to a small number of nonprofits that had enabled crypto donations.

Following the bull market of 2017, many crypto traders were able to generate significant profits. In the U.S. and many other countries, the IRS treats crypto assets as property meaning that crypto traders had a tax incentive to donate Bitcoin directly to nonprofits. Many traders did this in order to secure a capital gains tax right off, and several nonprofits who were able to receive crypto gratefully received these donations.

The Giving Block founder Alex Wilson says they have big expectations for this Tuesday. “The last time Bitcoin hit $20k we saw millions of dollars donated to nonprofits in just December alone. We’re expecting huge major gifts this year. There are a lot of crypto traders sitting on capital gains that they can offset by donating to nonprofits. Donating cryptocurrency creates a virtuous cycle of giving. Higher crypto prices mean more crypto giving. More crypto giving means more crypto adoption.”

Shehan Chandrasekera, Head of Tax Strategy at CoinTracker, a bitcoin and crypto tax software startup says that donating crypto to charities is one of a handful of tax strategies allowed in the tax code. “Crypto donations provide two benefits at once,” explained Chandrasekera. “By donating cryptocurrency to charities, firstly, you get to bypass the capital gains taxes on appreciated cryptocurrency holdings. Secondly, you get a deduction on Schedule A which will reduce your both crypto and non-crypto taxable income.”

The Giving Block was set up to provide a solution for nonprofits to receive crypto donations. The company also acts as a central hub for wealthy crypto traders and investors to find a nonprofit that represents a cause they support and are interested in donating to.

In 2019, only 12 nonprofits were able to accept crypto donations. One year later and potential donors now have over 120 nonprofits to choose from and it’s easier than ever to begin accepting cryptocurrency donations.

Bitcoin Tuesday, which takes place next week on December 1 is a new initiative by the Giving Block to raise funds for nonprofits and promote mainstream crypto adoption.

A number of the world’s leading nonprofit organizations are teaming up with the biggest brands in the crypto for a good cause that raises funds for those that need them most, while also raising the profile of crypto.

Nonprofit participants include famous organizations such as Save the Children, No Kid Hungry, and The American Cancer Society alongside a wide range of other small/mid-sized nonprofits such as Sea Shepherd UK, The Seasteading Institute, and The Tor Project, supporting causes from healthcare to education to wildlife and more.

Crypto companies that are sponsoring the Bitcoin Tuesday campaign include Gemini, Ledger, Blockfolio, Flexa, Storj, Silvergate, and Ditto PR.

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