NFTs have been all over the internet for well over a year now. Due to the sudden surge of cash and interest in NFTs, there has been a tsunami of cryptocurrencies donated in support of NFTs and associated causes. Some NFTs have been sold for more than $69 million, resulting in hefty tax payments for their developers. Many of these artists have turned to us for assistance in reducing their taxable income. Art gifts are prevalent in the charity sector, in large part because of the tax advantages of donating valuable goods.
Is there a reason why someone would give crypto or an NFT away?
Of course—and that’s to do good. And at the same time, people can save money on their taxes. In many countries, such as the United States and the United Kingdom, charitable property donations (such as stocks, cryptocurrency, and art) are generally tax-deductible.
Everything else is a bonus. To avoid paying capital gains taxes, donors might give appreciated property and receive a tax deduction for the fair market value. Additionally, neither you nor the organization you donate to (such as those affiliated with The Giving Block) is responsible for paying any taxes on the money you provide.
Then, how does it all work out in the field? A few years ago, you invested $10,000 in BTC, and it’s now worth $50,000 since you kept it. You’ll be hit with a 30% tax penalty if you sell your BTC because the sale is now a taxable event. A direct donation of BTC permits you to write off the total amount, contribute it to the nonprofit, and keep it for yourself. As a result, you provide 30% more, the charity receives 30% more, and your tax deduction is 30% higher. Everybody wins.
We advocate selling your NFTs and sending the money to a crypto-friendly charity, such as the Lost Cats. Visit Cryplazo to check out the https://www.lostcats.io/. Through the sale of digital art on the Solana blockchain, the proceeds from this collection will be used to aid feline fur babies that are in need. This endeavor is laced with genuine care for the group’s love of cats.
The group has spent a lot of time and effort looking for organizations that can help the Lost Cats community worldwide. To improve the lives of cats, it focuses on creative programs to securely capture and offer shelter and support the science and medicine that goes into keeping these animals healthy.
The Lost Cats initiative is still in its infancy, but it is gaining momentum quickly. All that is needed is a few more decent people in the community who will help keep things going and bring in some good vibes.
Traditional philanthropy and crypto philanthropy are very different. Since today’s generation is focused on how they can make the most effect for organizations they care deeply about, we’ve witnessed an increase in “intentional philanthropic gifts.” Today, you have the chance to donate and make a difference not only through traditional means, but also through NFTs.