Topic: [ANN] Bit-pay Merchant Solutions for Charities & Non-Profits - page 3. (Read 4772 times)

Correct.  The receipt has the name of the charity and the name of the donor.  That is what the donor needs for their taxes.  The process works exactly the same as making a charitable donation with Visa, or Paypal.

Great job!

Just a thought: bitcoinsforcharity.org had an option before where people could contribute computer hashes to charity. The browser-based miner they used, Krad miner, has since gone off-line, but there is another Webcl-based miner run by http://www.coined.com online. Perhaps you could add an option to let people mine bitcoins for charity via their browser..

Okay, so I assume that because it's not a problem with donations via Visa, that although bit-pay is technically the recipient of the donation, it is still tax deductible?

With the way our system is setup, that may not be necessary.  The bitcoins are held by bit-pay (payment processor) then turned over as US Dollars to the Charity.

It works exactly the same way if a charitable donation is made with a Visa card.  Visa (payment processor) has the funds for a very short period of time, then they are sent to the Charity.

With our system, the charity receives the donation into their bank account as US Dollars.  It's much easier to place a value and sell bitcoins than it is to sell some furniture, for example, that people donate to charities all the time.

Would the EFF technically be the owner of the bitcoins for the short time prior to their sale on the exchanges?  Is there any way it could be done so that the donor maintains ownership until after conversion into USD?  Or would this require the donor to have an account with bit-pay?  It would be great if charities could remove themselves from all risk due to legal uncertainty surrounding bitcoins.

Yes, we will convert the bitcoins to dollars for them immediately, and send them the funds every business day by ACH.

Great!  Do charities have the option of automatically converting their bitcoin donations into USD with this?  If so, then perhaps this could alleviate the EFF's concerns about accepting bitcoin donations?

Thanks to MemoryDealers for this great idea!

ANY charity can now accept bitcoin donations quickly, and easily!  Here's how

https://bit-pay.com/forCharities.html

1. The donor receives a receipt for their tax purposes, which shows the bitcoins paid and the value of the donation.

2. The charity receives USD into their bank account, along with an itemized report of all donations.

3. A unique bitcoin address is created for each transaction, verifiable in the block chain.

But wait, how are bitcoins tax deductible?  Huh?

The reality is that anything with value can be tax deductible.  Bitcoins are actually much easier to establish a value for than furniture, clothing, food, blankets, and all the other items that charities accept every day.  Bitcoins have a specific value in Dollars, Euros, Pounds, etc, which is created by the exchanges.

Any charity that accepts credit card donations pays a processing fee to the credit card companies.  For example, using a "rewards" type card to make a $10 charitable donation, the organization pays 10 cents plus 3.5%.  In other words, for a $10 donation paid with a credit card, the charity only receives $9.55.

Bitcoins can reduce the processing fees tremendously!

And here's the bonus, only from Bit-pay.

If the charity is registered with the IRS Publication 78, Bit-pay will process the payments at NO CHARGE.

http://www.irs.gov/app/pub-78/

You must be on the IRS Pub78 list as eligible to receive tax-deductible donations to qualify for the no-charge processing.

So spread the word!  Tell every charity you know that they need to accept bitcoins!  It can't possibly be any easier or cheaper than this!!