Perhaps you’re a crypto connoisseur, investing in cryptocurrency since you could get a Bitcoin for under $100. Or, you’ve just started dabbling in the crypto market, and “HODL” is a new verb to you. The cryptocurrency economy is gaining steam, with its total market cap reaching more than $2 trillion in March 2022. Digital currency has become a mainstay in many financial toolboxes, and it has also become a powerful tool leveraged by donors who want to have maximum impact on the causes close to their hearts. Well, whether you’re a veteran or a newcomer to crypto, there’s nothing cryptic about donating cryptocurrency to Habitat – and a very good reason to do it.
Schwab Charitable calls donating cryptocurrency “a tax-smart approach to maximize your philanthropic impact.” That’s right. When you donate crypto to Habitat, we both benefit. If you donate cryptocurrency directly to Habitat – rather than selling then donating the proceeds – you avoid the capital gains tax you would have incurred from the appreciated value. Plus, if you itemize your tax deductions, you could deduct the full appreciated value of the cryptocurrency you’ve donated to Habitat. This means more deductions on your tax return, while having more available to donate to your favorite affordable housing builder.
It means that, like donating appreciated stock, donating cryptocurrency can be a highly tax-efficient way to help Habitat build more. It’s another way you can offer a hand up to local families working hard to build their homes, their communities, and legacies to last generations.
Just five simple steps will have you on your way to being a crypto-contributor:
- Visit our cryptocurrency donation page and click the “Donate Cryptocurrency Today” button.
- Fill out a short form with information about the amount and coin you’d like to donate. Plus, some contact information—so you can get a tax receipt, and we can thank you for the support! We accept all major coins.
- Once you submit the form, you’ll see a temporary wallet address to send the coin to.
- After the coin has been received, you’ll get a copy of a tax receipt via email.
- Behind the scenes, your donated coin will be liquidated and the proceeds will fund the construction of critically needed affordable housing—like our first Zero Net Energy development, located in Walnut Creek—Esperanza Place!