Crypto Donations Are Not Just a Fad, They're Just Getting Started!
Cryptocurrency donations to charity are booming, with gifts still rolling in as the calendar winds down. What gives? It could be that people who have been waiting patiently for a better economic future may finally find it on Cryptopay's platform where they can donate their hard-earned cryptocurrency and get some good out of doing so too!
Donations Are on the Rise
The increase in digital asset donations was significant on Crypto Giving Tuesday, a campaign started by The Giving Block. 583% more than 2020's numbers!
Crypto Giving Tuesday has been such a success that the company is planning to hold it again next year. This time around they plan on processing $2 million in donations with an average donation being 12600 dollars!
The Giving Block has inspired a new generation of donors to use their power and make the world better.
A self-proclaimed "donor nerd," Pat Duffy started The Giving Block with just $5 in an effort not only help his favorite charity but also inspire others who are passionate about giving back as well!
Other companies have seen similar growth in digital currency philanthropy, too!
Donor-advised funds have seen a major spike in donations thanks to cryptocurrency. Fidelity Charitable, one such organization that accepts digital currency through its donors' charitable investment accounts for future gifts says it's received nearly five times as much money since last year -- an increase from 2020 up until now (early 2021).
The price of bitcoin has gone up over 70% in just one year. This may be unprecedented growth for some assets, but not all stocks or bonds will experience such skyrocketed prices because they're linked to underlying economic factors that affect their value differently than money does via demand and supply-and those differences can cause sudden fluctuations when you least expect them!
Digital currency owners may be more generous than other investors. This is suggested by a recent study, which found that Bitcoin users are willing to donate money for causes and organizations they support in greater proportion than traditional savings accounts or other investments."
Some 45% of cryptocurrency owners gave $1,000 or more to charity in 2020 according to a Fidelity Charitable study. This is compared with 33% for all investors who donated during the same period time frame--a difference that demonstrates how active those holding Bitcoin are when it comes their giving back!
One of the most important things in life is to give back and be an active partaker rather than a passive recipient. One way this can happen, according to Duffy, who has spent his career studying transformative capital at universities around North America as it relates specifically with young people's motivations for giving back through service or volunteering opportunities-is when they're given fresh new perspectives on how one person’s accomplishments could positively impact another."
While taxes aren't the prime motivation for gifts, there's still time to score a 2021 write-off. Experts say it all boils down what type of crypto donation you want: Short Term or Long term? Donations made between now and December 31st will be considered short term so make your choice wisely!
Cryptocurrency is property in the eyes of IRS, meaning it may be subject to capital gains taxes if sold or exchanged at a profit. The length of ownership affects rates: If you hold digital currency for more than one year and have taxable income over $200k dollars annually then there will be no tax liability but under this threshold taxpayers will pay higher levels up 37%.
Posted Using LeoFinance Beta
