Donating in-kind is a good thing, but it doesn't cover the full story.

In-kind donations only give you 30% write-off, whereas cash donations give you 60% write-off.

This is a clever trick by the IRS to basically insert themselves in the donation chain. For example

In most cases Sell / Pay / Donate wins. Also not mentioned in article is "donating bitcoin" requires a qualified appraisal of the amount donated, which will add a few hundred dollars to the process.

bitcoin

Why Donating Bitcoin Actually Matters (And How the Tax Code Rewards It)

0xbitcoiner

Donating in-kind is a good thing, but it doesn't cover the full story. 

In-kind donations only give you 30% write-off, whereas cash donations give you 60% write-off.

This is a clever trick by the IRS to basically insert themselves in the donation chain. For example

**In Kind**

1. You donate $10K in BTC to charity. 
2. You get ~$3K write-off
3. Charity gets full $10K

**Sell / Pay / Donate**

1. You sell $10K, and incur ~$1.5K in taxes
2. You pay 1.5K in taxes, and donate $8.5K remainder
3. You get ~$5K write off (ie. 60%)
4. Charity gets 8.5K / gov gets their cut. 

In most cases Sell / Pay / Donate wins. Also not mentioned in article is "donating bitcoin" requires a qualified appraisal of the amount donated, which will add a few hundred dollars to the process. 

 