Arizona Nonprofits Accept Cryptocurrency
COVID-19, an economic recession and a growing social justice movement have driven nonprofits to investigate new and innovative ways to build relationships and diversify revenue. The Opportunity Through Entrepreneurship Foundation (OTEF), a local organization that educates and invests in people and organizations that create hope, is innovating in that effort by accepting donations in cryptocurrency.
Many industry experts and analysts have referred to cryptocurrency like Bitcoin as “digital gold” because both gold and Bitcoin have a limited supply, thus potentially retaining value on the market.
What’s more, donating cryptocurrency directly to a nonprofit is generally more tax-efficient and can save the donor money. The IRS classifies cryptocurrency as property for tax purposes, which means most donors owe no capital gains tax, so it is typically the most tax-efficient way to support a cause.
“Gifts of appreciated securities and other property of value have long been a cornerstone in the foundation of philanthropic giving,” said Joan Koerber-Walker, chairman of the Opportunity Through Entrepreneurship Foundation. “When a donor has cryptocurrency holdings, they have another option to draw from to support the charities and missions that matter to them.”
This month, OTEF began accepting crypto donations through The Giving Block, a crypto donations platform for charities, and has already received a cryptocurrency gift. The only other Arizona-based organization that has been qualified to received cryptocurrency on the site is the University of Arizona Foundation.
OTEF makes an impact with three focused initiatives. AZAdvances provides funding and support to life science researchers and entrepreneurs working on life-changing and life-saving innovations. D3Bio helps students connect with industry leaders as they prepare to embark on their careers, and OTEF Entrepreneurial Education helps people in at-risk communities become self-sufficient.
