Do Good - Pay No Tax - Get a Tax Deduction!

allgoodthings1

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Quote from: scarsbergholden on December 04, 2014, 08:10:01 PM

What is the point of donating as an anon?

One reason I can think of:
Jesus said, "But when you give to the needy, do not let your left hand know what your right hand is doing, so that your giving may be in secret. Then your Father, who sees what is done in secret, will reward you." Matthew 6:3-4.

It's a noble road. But some do choose to walk it.

panju1

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Quote from: scarsbergholden on December 04, 2014, 08:10:01 PM

Quote from: RodeoX on December 03, 2014, 11:35:47 AM

I gave smaller amounts at several places. When I saw that I could donate anonymously I decided to forgo the tax deduction and just give. So no tax break for me, but I do get to keep the buzz of helping people.
My favorite was the charity below. They help develop apps for medical workers in the 3rd. world. The software is free and open source. It allows tracking of diseases, registering births, mapping distribution of medical supplies. All sorts of things that are difficult in austere environments.

http://bitgivefoundation.org/medic-mobile-campaign/

What is the point of donating as an anon? Most charities that qualify for a tax break (but really all of them) are not something that many (or really any) people would want to not associate themselves with.

The only potential reason I think think of not wanting to disclose your identity would be to prevent other charities from "hitting you up" for more donations

People who make money illegally might like to donate to charities too.
Maybe, they think part of their sins will be forgiven if they donate to the church. Grin

For them, bitcoin is a good option because of its anonymity.

bitgold

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Handy resource, great compilation, thank you.

scarsbergholden

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Quote from: RodeoX on December 03, 2014, 11:35:47 AM

I gave smaller amounts at several places. When I saw that I could donate anonymously I decided to forgo the tax deduction and just give. So no tax break for me, but I do get to keep the buzz of helping people.
My favorite was the charity below. They help develop apps for medical workers in the 3rd. world. The software is free and open source. It allows tracking of diseases, registering births, mapping distribution of medical supplies. All sorts of things that are difficult in austere environments.

http://bitgivefoundation.org/medic-mobile-campaign/

What is the point of donating as an anon? Most charities that qualify for a tax break (but really all of them) are not something that many (or really any) people would want to not associate themselves with.

The only potential reason I think think of not wanting to disclose your identity would be to prevent other charities from "hitting you up" for more donations

allgoodthings1

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Activity: 270

Merit: 250

Quote from: Ron~Popeil on December 03, 2014, 11:31:34 PM

I should have tracked my donations to Sean's Outpost this year. I didn't do it for a tax break though so nothing really lost for me. It feels good to know that someone ate a meal today because of me.

Yes. "It feels good.." is reason enough to give to a lot of different organizations and causes. And it has to be reason enough to give to ones like Sean's Outpost, that are not registered 501(c)(3)s.

Do Good - Pay No Tax - Get a Tax Deduction! It's too bad the last two parts of this only work for U.S. registered public charities. There are so many good organizations out there. And, good people doing great things. And, just good people in need of basic sustenance.

Ron~Popeil

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I should have tracked my donations to Sean's Outpost this year. I didn't do it for a tax break though so nothing really lost for me. It feels good to know that someone ate a meal today because of me.

MoneyShot2

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Thumbs up for this, anything done to limiting the funding of the u.s. govt is a good deed.

RodeoX

legendary

Activity: 3066

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The revolution will be monetized!

I gave smaller amounts at several places. When I saw that I could donate anonymously I decided to forgo the tax deduction and just give. So no tax break for me, but I do get to keep the buzz of helping people.
My favorite was the charity below. They help develop apps for medical workers in the 3rd. world. The software is free and open source. It allows tracking of diseases, registering births, mapping distribution of medical supplies. All sorts of things that are difficult in austere environments.

http://bitgivefoundation.org/medic-mobile-campaign/

Willisius

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Activity: 364

Merit: 250

I'm really quite sane!

Quote from: allgoodthings1 on December 02, 2014, 05:30:42 PM

Quote from: hyphymikey on December 02, 2014, 04:57:49 PM

So what you are saying is, at the end of the year I can figure out my taxes on my bitcoin and give that exact amount to charity, and end up paying zero taxes? Pretty much all my tax money goes to charity instead of the government?

Oh, no. It's more complicated than that. Chiefly in this: Schedule A deductions for donations to public charities are limited to 50% of your adjusted gross income. http://www.irs.gov/Charities-&-Non-Profits/Charitable-Organizations/Charitable-Contribution-Deductions So most people cannot deduct enough donations to completely erase their tax liability for the year.

But this giving strategy can work wonders for anyone with either
* Large capital gains on his/her oldest bitcoin holdings, or
* Enough qualified deductions to itemize on Schedule A.
An individual with both fully participates in both advantages.

Well the point is that you can effectively erase your capital gains tax owed on bitcon that you acquired at much lower prices then what it is trading at now. This would work especially well for people that would be donating to charity anyway and have a relatively high income.

You would effectively both reduce your taxable income and save on income taxes which would make the effective savings up to ~50% (plus state income taxes when applicable and allowable) for people in the highest marginal tax brackets.

panju1

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Quote from: RodeoX on December 02, 2014, 04:10:18 PM

Amen. I am donating something tonight.
And, as you mention, I will be able to donate the whole amount without incurring taxes. So a bitcoin that I bought for $0.75 provides $375 of help at current value. Even better MasterCard does not get a cut. In fact, think about that. The banks get about 3% of everything you donate. They are making their money from the suffering of people and those willing to help.

Not from me! I use bitcoin.

http://www.bitcoingivingtuesday.org/

Apart from remittances, this is one business which could easily be taken over by Bitcoin.
Came across this old (2010) article from Huffington Post which estimates that credit card companies make ~$250 million a year from charitable donations.

http://www.huffingtonpost.com/2010/01/14/as-wallets-open-for-haiti_n_423238.html

Those profits rise sharply after major disasters, when humanitarian relief organizations such as Oxfam and Operation USA take in more than 85 percent of their donations via credit card -- and the credit card providers, with only a few exceptions, refuse to waive their fees.

Credit card companies have only been willing to waive their processing fee for charity once, Richard Walden, the CEO of Operation USA, tells the Huffington Post, and that was for the tsunami disaster of 2004.

bitcoinmining

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This system should work in all countries in 1-2 years period, for example I donate to Greenpeace regularly and it's not so hard to donate as bitcoin. I'm waiting the same thing for my country, win&win&win it sounds goood Cool

allgoodthings1

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Activity: 270

Merit: 250

Quote from: hyphymikey on December 02, 2014, 05:35:11 PM

Thanks, I guess I will let my tax advisor help me with that. My only income this year was with bitcoin so it shouldn't be that difficult.

Great. Just see your advisor right away this month -- before the end of the year -- so that, if (or to whatever extent) the strategy works for you, you can make the donations you choose before the end of the year.

Oh, and this caveat: Be sure to make your donations directly to the organizations in bitcoin. Don't sell the bitcoin first and give fiat.

hyphymikey

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Quote from: allgoodthings1 on December 02, 2014, 05:30:42 PM

Quote from: hyphymikey on December 02, 2014, 04:57:49 PM

So what you are saying is, at the end of the year I can figure out my taxes on my bitcoin and give that exact amount to charity, and end up paying zero taxes? Pretty much all my tax money goes to charity instead of the government?

Oh, no. It's more complicated than that. Chiefly in this: Schedule A deductions for donations to public charities are limited to 50% of your adjusted gross income. http://www.irs.gov/Charities-&-Non-Profits/Charitable-Organizations/Charitable-Contribution-Deductions So most people cannot deduct enough donations to completely erase their tax liability for the year.

But this giving strategy can work wonders for anyone with either
* Large capital gains on his/her oldest bitcoin holdings, or
* Enough qualified deductions to itemize on Schedule A.
An individual with both fully participates in both advantages.

Thanks, I guess I will let my tax advisor help me with that. My only income this year was with bitcoin so it shouldn't be that difficult.

allgoodthings1

sr. member

Activity: 270

Merit: 250

Quote from: hyphymikey on December 02, 2014, 04:57:49 PM

So what you are saying is, at the end of the year I can figure out my taxes on my bitcoin and give that exact amount to charity, and end up paying zero taxes? Pretty much all my tax money goes to charity instead of the government?

Oh, no. It's more complicated than that. Chiefly in this: Schedule A deductions for donations to public charities are limited to 50% of your adjusted gross income. http://www.irs.gov/Charities-&-Non-Profits/Charitable-Organizations/Charitable-Contribution-Deductions So most people cannot deduct enough donations to completely erase their tax liability for the year.

But this giving strategy can work wonders for anyone with either
* Large capital gains on his/her oldest bitcoin holdings, or
* Enough qualified deductions to itemize on Schedule A.
An individual with both fully participates in both advantages.

hyphymikey

hero member

Activity: 784

Merit: 1000

So what you are saying is, at the end of the year I can figure out my taxes on my bitcoin and give that exact amount to charity, and end up paying zero taxes?

Pretty much all my tax money goes to charity instead of the government?

RodeoX

legendary

Activity: 3066

Merit: 1147

The revolution will be monetized!

Amen. I am donating something tonight.
And, as you mention, I will be able to donate the whole amount without incurring taxes. So a bitcoin that I bought for $0.75 provides $375 of help at current value. Even better MasterCard does not get a cut. In fact, think about that. The banks get about 3% of everything you donate. They are making their money from the suffering of people and those willing to help.

Not from me! I use bitcoin.

http://www.bitcoingivingtuesday.org/

allgoodthings1

sr. member

Activity: 270

Merit: 250

Check out this resource list:

**IRS 501(c)(3) Public Charities That Accept Bitcoin

https://bitcointalksearch.org/topic/irs-501c3-public-charities-that-accept-bitcoin-758674

Large or small donation, it doesn't matter. When you donate bitcoin to any of these public charities, you at least do good. If you're a U.S. taxpayer that itemizes deductions on your Form 1040 (Sch A), you can also take a deduction for your gift. And if you donate bitcoin that you've held for more than a year and they've appreciated in value, you are also exempt from paying capital gains tax on the gifting transaction. It's a win - win - win. And this is a great day to enjoy it.

Topic: Do Good - Pay No Tax - Get a Tax Deduction! (Read 1373 times)