Cryptocurrency donations are providing a much-needed lifeline to hard-up charities right now. In many countries, the coronavirus pandemic has triggered massive government support packages for businesses disrupted by national lockdowns. Charities have not been so lucky. In the U.K. one in 10 nonprofits face bankruptcy. In the U.S., one in five donors have said they won’t be giving until this is all over.
Innovative, mainly larger charities are tapping into the thousands of new crypto-rich individuals who’ve lately made a mint from bitcoin. Cutting out their usual fundraising middlemen also means donors can be guaranteed the biggest bang for their bitcoin. The Red Cross, UNICEF and Greenpeace, among others, encourage donors to give using crypto rather than cash and frequently advertise the associated tax benefits. Selling bitcoin and donating the after-tax fiat proceeds usually attracts a capital gains levy. By sending crypto directly to charities this is avoided, plus they receive the full value of the