BENEFITS OF GIFTING CRYPTOCURRENCY
Virtual currency is taxed as property, not currency. Accordingly, the realized gain is treated similar to securities. Gifts by donors of appreciated currency held longer than one year will be subject to the 30% of AGI limit of deductibility based on fair market value while avoiding capital gain tax. Crypto gifts may be made to a Donor Advised Fund or Endowment.
GIFT PROCESSING
MB Foundation is partnering with BitPay to process gifts of crypto. BitPay currently handles the following cryptocurrencies: Bitcoin, Ethereum, Bitcoin Cash, Dogecoin, SHIBA INU, Wrapped Bitcoin, Litecoin, Gemini Dollar, USD Coin, Dai, Binance USD, Pax Dollar, ApeCoin, Euro Coin.
BitPay charges a 1% processing fee that will be taken from the total amount donated.
THE PROCESS
- Complete our online Crypto Gift Notification Form.
- Gift will be reviewed by MBF Gift Acceptance Committee.
- Upon approval, instructions will be provided to make the donation electronically via BitPay.
- Cryptocurrency gifts of $500 or more require the donor to fill out IRS Form 8283 to claim the deduction.
- Gifts of $5,000 or more will require a qualified third-party appraisal. This cost will be the responsibility of the donor.
- As cryptocurrency is highly volatile, BitPay will liquidate the gift to U.S. Dollars as soon as possible.
- Net proceeds will be placed in the MBF account as instructed by the donor. If account is currently not set up, donor will need to complete account paperwork.
- MB Foundation will provide the donor with a receipt stating the name and number of cryptocurrency coins donated, the date of receipt, and the fund or account benefiting from the gift.
PROFESSIONAL ASSISTANCE
Our staff is available to discuss this gift option with you and work through the process to meet your objectives. Contact us to get started today!