The Giving Block, an online platform that allows nonprofit organizations and charities to accept digital asset donations, has launched a service tailored to donors wishing to send large amounts of crypto.
In a Wednesday announcement, the Giving Block said it partnered with crypto tax startup Taxbit, New York-based accounting firm Friedman LLP, and Ren to start a service aimed at individuals, institutions and advisors looking to reduce their tax exposure when donating crypto. Giving Block co-founder Pat Duffy said the Private Client Services streamlines its existing donation process allowing “high-value donors to quickly and securely give large gifts to their favorite charities while reducing their tax bill.”
According to the platform, individuals wishing to make large donations in crypto, including “illiquid small-cap and mid-cap cryptocurrencies” now have more opportunities to reduce their capital gains tax and potentially, increase deductions when it comes time to report to the IRS. The Giving Block’s “high-value donors” have access to crypto tax experts, accounts and appraisers to facilitate the transaction and subsequent reporting.
With many countries already celebrating the holidays this year, many have chosen to give to charity in addition to gifts for friends and family. Giving Block CEO Alex Wilson told Cointelegraph last week he expected the platform to handle more than $100 million in crypto donations for 2021, a more than 2,400% increase over $4 million the previous year.
Some trading platforms have already enabled the gifting of crypto this holiday season. Digital payments company Block announced on Tuesday that users of its subsidiary Cash App could send as little as $1 in Bitcoin (BTC) or stock as a gift in the same way they had been sending cash. Fintech provider Unbanked said earlier this month it would be enabling crypto donations for Toys for Tots, a program run by the United States Marine Corps that collects toys to distribute to disadvantaged children.