501(c)(3) approved : Donations to OpenSats will now officially be tax deductible

[hugeblack]

Donations to OpenSats, which are 100% passed through to #Bitcoin Core and FOSS contributors will now officially be tax deductible for all donors.

Source ---> https://twitter.com/OpenSats/status/1473443805848346624/photo/1

if you donate assets that would otherwise incur a long-term capital gain (such as BTC you bought more than a year ago...) then you get to deduct the FMV (subject to AGI-based limits & some other restrictions

Source --> https://www.irs.gov/publications/p526#en_US_2020_publink1000229761

This is related to Bitcoin donations directly without the need to convert it into dollars and then donate dollars.
The idea is to stimulate charitable giving but if you intend to donate it is better to donate Bitcoin directly rather than donate with US dollars.

[Poker Player]

Sounds like good news to me, one more in the normalization of Bitcoin, the only thing I was thinking:

The idea is to stimulate charitable giving but if you intend to donate it is better to donate Bitcoin directly rather than donate with US dollars.

is that people who have their bitcoin without KYC, and we have a few on the forum, will probably prefer to donate dollars to deduct the contribution.

[PrimeNumber7]

The entity you are donating to will likely convert any coin you give them into USD. They will need to pay their bills and further their cause, which will ultimately be denominated in USD.

[hugeblack]

is that people who have their bitcoin without KYC, and we have a few on the forum, will probably prefer to donate dollars to deduct the contribution.

At least it is a reason to use Bitcoin as a currency and not as an asset or stock to get more profits.

The entity you are donating to will likely convert any coin you give them into USD. They will need to pay their bills and further their cause, which will ultimately be denominated in USD.

Personally, I see it as an encouragement for people to spend assets instead of converting them to dollars, and not all charities will convert Bitcoin into USD directly.

[PrimeNumber7]

The entity you are donating to will likely convert any coin you give them into USD. They will need to pay their bills and further their cause, which will ultimately be denominated in USD.

Personally, I see it as an encouragement for people to spend assets instead of converting them to dollars, and not all charities will convert Bitcoin into USD directly.

Charities are not in the business of accumulating money. Their business is to distribute their donations in such a way that furthers their cause. So any donation they receive is going to get spent on either expenses related to running the charity, or on the cause of the charity. There are few expenses that can be paid for in terms of bitcoin, so IMO there is a good chance they will need to convert their bitcoin into fiat before spending their money.

There are many charities that accept appreciated property (such as stocks) as donations. There are tax reasons why people want to donate these assets (you noted them in the OP). Once a charity receives these assets, they will typically sell them.

[odolvlobo]

Note that donating bitcoins (or any property, really) worth more than $5000 takes extra effort. You must pay a "qualified appraiser" to do an appraisal of the bitcoins in order to determine their fair market value. Obviously, anybody can simply look up the price on an exchange, but that is not sufficient in this case.