When a 68‑year‑old decided to follow in the footsteps of MacKenzie Scott, she chose to hand over appreciated shares rather than cash. The key benefit is that the sale of those shares is avoided, so the capital‑gain tax that would normally apply is sidestepped. For retirees, this is especially valuable because the proceeds from a sale can bump up their income and potentially push Social Security benefits into a higher tax bracket. By donating the shares directly, the donor keeps the sale out of their taxable income stream.
The same logic can be applied to crypto holdings. If you’ve held a coin that’s risen in value, selling it would trigger a capital‑gain tax. Donating the crypto to a qualified charity instead can eliminate that tax hit, while also providing a charitable deduction. In today’s climate—where Bitcoin sits near $63 k and the fear‑greed index is at extreme fear—many investors are looking for ways to manage tax exposure while still supporting causes they care about.
For retail crypto readers, the takeaway is that charitable giving can be a tool for tax efficiency. As the market remains volatile, the strategy of donating appreciated assets may become more attractive. Keep an eye on any forthcoming tax‑policy updates or crypto‑specific legislation that could alter the rules around charitable contributions.