Despite skepticism that cryptocurrency would be a fleeting trend, it is slowly integrating into being a regular part of life.
More banks and retailers are able to process it, and as explained by The Wall Street Journal, now you can even use it as a form of payment to charities.
The first thing to understand is that it is definitely not all charities that accept payments in this way yet. Many still don’t, so it is important to ask.
But for those that do, one of the simplest methods for you the donor is to do this through a donor-advised fund. This not only gives you the tax deduction, but also allows you to maintain control over when the money is doled out.
It is also simple to set up the DAF. You only need the key that allows you to access your account and then complete a few forms to get everything established. It is much less complex than you might fear when it comes to learning some new method of doing things digitally.
As stated, only some companies are currently established to directly accept cryptocurrency. But even if you want to donate to a charity that does not have this capability yet, they should still be able to process the payment through a third-party service. It is just a question of whether that extra step will be necessary or not.
Fred Hubler, Chief Wealth Strategist for Creative Capital Wealth Management Group, a Phoenixville-based firm offering retainer-based advice and access to accredited investors, recommends his clients find a local community foundation.
“For our clients who are interested in philanthropy, one of the additional avenues is a community foundation. Most are becoming savvy enough to handle crypto currencies and there are some well-run community foundations in the Delaware Valley.”
All in all, once you learn what you are doing, the whole process can be even more convenient than how you were donating to charity before.
For more on the specifics for what you need to know to donate to charity using crypto, check out the Wall Street Journal article here.
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