You’ve probably been hearing a lot about cryptocurrency these days. With the likes of Bitcoin, Dogecoin, and other forms of digital currency making headlines, more venues are accepting crypto just like they would cash and credit cards. There is a growing movement within crypto that is seeing beginners and experts alike subscribe to an almost worship of cryptocurrency exchanges. It’s not just online retailers that are taking crypto, it’s popping up where you wouldn’t expect: churches.
Crypto Donations
The truth is more charities have embraced these digital assets. Nonprofit organizations have found that the best crypto exchange operators are able to allow deposits for lower fees within the United States. Outlets like Coin base and Kraken have become very popular amongst crypto trading platforms, allowing users real-time access to their bank accounts to be able to trade cryptocurrency. Through this payment method, charitable organizations are finding just another way to bring in donations.
Through the COVID-19 pandemic, churches were forced to go virtual with their masses and other gatherings. This led to churches relying on debit card and credit card donations through a third-party provider. Some churches have even looked into the formation of a crypto wallet to seek donations to cover offering supplies. By selling cryptocurrency from parishioners, churches are putting the money towards school supplies for religious education. It’s also being put towards hand sanitizer, masks, and other materials needed to run mass with current COVID protocols.
Risks of Crypto Exchanges
While cryptocurrency can be the answer to the prayers of a church needing tithing, there are some drawbacks to crypto trading. With fluctuating trade values through the cryptocurrency industry, an intended donation from one’s own wallet may not be translating to the U.S. dollar value intended when submitted through a user interface. Traders may be hesitant to give over for church supplies if they aren’t giving over the intended amount from their crypto assets. However, these payment options come with special security measures to ensure that it is kept to the standards of regulators.
The crypto market can be testy, but some of the best options out there are embracing newbies who may be hesitant about what goes into operating on a trading platform. Outlets like Coinbase and Finance will come with special offers that encourage newcomers to learn about cryptocurrency, and earn crypto as a reward. With ease of use, investors feel more confident in making trades through popular cryptocurrencies while avoiding significant trading fees through centralized and decentralized exchanges. It’s even more accessible thanks to mobile applications for these crypto trading outlets.
Tax-Free Cryptocurrency Transfers
Crypto transactions that are donations to a church can be seen as gifts, avoiding taxation through regulatory bodies. This is a tax-smart solution to active trading in the cryptocurrency world. Those who donate get an income tax deduction for the full fair market value of the crypto. You also won’t have to pay capital gain or income tax when giving to a 501(c)(3) charity or through a church. Be wary of calculated cryptocurrency gains and losses, as the IRS in the United States is now combing through these payment options.
Donations to transferred companies, which some churches may register under, can also be done as a tax-free transfer. Experienced traders can monitor their account balance to avoid higher fees with a legal transfer to an LLC. While this can be a lot for first-time users of crypto to comprehend, consult with the customer service outlets provided by these apps and trading platforms. This could save you from making errors and get you to become a much more active trader. This can also lead to more donations coming to the virtual collection plate.
