Non-fungible tokens are intangible assets which represent ownership of digital media such as art, audio, video, avatars and other items for online gaming. They are designed to allow artists to exercise control over their work and avoid its appropriation.
Similar to cryptocurrencies, NFTs are held in digital wallets and traded using blockchain technology, a type of indelible digital ledger. This allows the bearer of an NFT to prove ownership of the digital media from which NFT value is derived.
Donate through an NFT Marketplace
Many NFT marketplaces provide the option to distribute proceeds from a sale proportionately. By assigning our cryptocurrency wallet ID, and allocating a predetermined percentage of your NFT sale proceeds, you can ensure that we automatically benefit from the sale of your work.
There are a number of NFT marketplaces where artists and creators can sell NFTs. Most marketplaces use cryptocurrencies, such as Ether or Bitcoin, to close out transactions. In order to facilitate an NFT transaction, both the buyer and seller must have a digital wallet issued by the marketplace on which the NFT is traded and a separate digital wallet for a cryptocurrency supported by that trading platform.
Why to Donate NFT and Crypto
Its a double win, you save on both taxes and help the world at the same time. Donations of property (like stocks, cryptocurrencies, and art) are typically tax-deductible in many countries like the United States.
When donating appreciated property, the donor does not have to pay capital gains taxes and gets a fair market value deduction on their tax return. And as long as you’re donating to a registered charity the charity doesn’t pay any taxes either.
Example of a NFT Donation to save on taxes
|Say you bought $10,000 worth of BTC a few years ago. You HODLed and now it’s worth $50,000. If you sell your BTC, you trigger a taxable event and are left with 30% less than the sale value. If you donate the BTC directly, you get to donate the full amount, write-off the full amount, and the nonprofit gets to keep the full amount. That means you are donating 30% more, the charity gets 30% more, and your write off is 30% higher. Wins all around.|
How can I donate my NFT to charity?
Please contact us directly to learn more about charitable NFT donation. Our team will evaluate each potential donation on a case by case basis.
Donate Via Coinbase
We use Coinbase to manage our crypto donations. Click the amount of hives or donation amount that you would like to sponsor. Then fill out the contact information. Then click continue to "payment", at this point you will see an option that says "More Payment Options". This will redirect you to Coinbase.
Please do not hesitate to reach out to us if you have any thoughts or suggestions! We are always looking for feedback on how we can both improve our systems and streamline things as technology progresses.