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Cryptocurrency Giving

Cryptocurrency (Ethereum, Bitcoin, etc.) is a great way to give to Care Net. And now might be the best time to give your crypto to Care Net. More on that later.

But first, let’s answer a few questions:

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For more information, contact Bob Milton at Bmilton@care-net.org or 205-914-4812

WHAT IS CRYPTO?

To put it simply, cryptocurrency (crypto) is a digital currency. That means you cannot see it, smell it, or touch it. It’s a digital currency.

 

IS IT REAL?

Even though it’s digital it is very real. There are many things you can do with crypto. In the last year people have gotten paid in crypto, people have spent it on various items, and many people have made millions of dollars. And according to The Giving Block people have donated over $300 Million dollars in cryptocurrency over the last year.

 

WHY DONATE CRYPTO?

The IRS considers crypto as property, so your crypto donations to Care Net receive the same tax treatment as stocks. So the best reason of all to donate crypto you have held for at least a year is to save on capital gains tax issues you might have.

Let’s say that in these trying times, your cash funds are tight. You are barely making ends meet, but you still want to help us provide comfort, hope, and help to men and women facing pregnancy decisions. If you cash out your crypto you would have a rather large cost basis, especially if you have held it for a while and enjoyed the rise in value.

You could then give those funds to Care Net, but your tax burden (capital gains) could be super high. But if you donate your crypto coins to Care Net, you would avoid those nasty high capital gains taxes.

Here’s a simple illustration:

Bob bought 10 bitcoin at $500 each. That’s $5,000. That’s the cost basis. After 5 years the price of one bitcoin is $20,000. Bob now has a FMV of $200,000.The difference between what Bob bought his bitcoin for and what it’s now worth is $195,000 ($2000,000-$5,000).

That means that at a 15% capital gains rate, Bob would owe $29,250 in capital gains tax if he were to liquidate his bitcoin. He could then give Care Net as much as $170,750. That’s a nice gift.

But watch this. If Bob just gave his bitcoin to Care Net, he would be giving $200,000. If Bob itemizes his taxes that year, he could also get a tax deduction for that amount. Almost $30,000 more not to mention he would not be paying any capital gains taxes.

This is a WIN-WIN-WIN situation.

Bob gets to make a larger impact with his gift and save on taxes. Care Net receives a larger gift and can help more families and save more babies. That’s a WIN-WIN.

But now watch: A family facing a pregnancy decision can choose life, save their unborn baby and find Jesus. WIN-WIN-WIN

Please understand that this is a hypothetical situation and is just for illustrative purposes only. Talk to your financial specialist for your specific situation.

Learn about how to donate crypto at www.cryptoforcharity.io.

If you would like to know more about Crypto giving call Bob at 205-914-4812 or email at bmilton@care-net.org.

 

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