BitGive Officially recognized as Charity by IRS
Bitcoin charity BitGive Foundation has received official approval from government.
At last some refreshing news of industry progress: Bitcoin charity BitGive Foundation has received official approval from government.
You would be forgiven for thinking that skepticism is displeasingly in vogue with US lawmakers this summer when it comes to Bitcoin, but to conclude so would be doing it, and them, a disservice.
Amid the backlash and general groaning caused by New York’s tabling of BitLicenses, the IRS did manage to grant the first 501(c)(3) status to a Bitcoin nonprofit organization, in so doing creating the first such entity legally recognized as a charity in the US.
BitGive itself is already a stalwart of the fledgling Bitcoin charity industry, having contributed to major international projects as well as partnering with existing organizations such as The Water Project to already achieve tangible results in developing nations.
“One of our first goals was to secure our 501 (c) (3) status, which enables BitGive to provide US donors a tax deduction for their donation and provides a number of legal and financial benefits to the organization,” she said in a press release issued Monday.
“We are very grateful for the expert legal team we have at Perkins Coie, LLP, who provided pro-bono services to establish the Foundation and apply for this tax exempt designation.”
The financial model will initially take the form of an investment fund, which will see cash injected directly to causes while “providing sustainable support for the organization,” the press release adds.
A Successful formula
On the back of this week’s successes, BitGive’s Founding Donors Campaign has been officially launched for both corporate and individual sponsors looking to become involved. Private donors will be officially embraced in the Membership Program, which will work on a subscription model akin to the mechanisms used by many major charitable organizations.
Meanwhile Gallippi took to the Bitcoin Foundation blog together with Marketing and Communications Director Jinyoung Lee Englund to highlight the organization’s advantages as well as provide further information on its most recent undertaking with The Water Project in sub-Saharan Africa.
“[G]iving through a traditional financial service such as credit cards or even PayPal means that the community loses an average of 2.9% + $0.30 per transaction — making smaller donations financially unviable. This doesn’t include the exchange fees, wire transfer fees and at times, in-country fees that are charged on the receiving end. BitGive’s goal of $10,000 will sponsor a full project for one community.”
They also announced that BitGive had already achieved over 80% of its US$10,000 funding goal for the enterprise.
More information on BitGive, as well as information on how to donate, can be found here.
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- Bitcoin for a Charitable Cause: An Interview with Connie M. Gallippi
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