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Donate Bitcoin: Difference between revisions
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<h5>Is Mozilla worried about the fluctuating value of bitcoin?</h5> | <h5>Is Mozilla worried about the fluctuating value of bitcoin?</h5> | ||
Ordinarily such fluctuations, like those of other investments, are not troubling. Mozilla’s bitcoin wallet provider, Coinbase, also provides Mozilla and other nonprofit clients the ability to convert bitcoins received into U.S. dollars at any time. Thus, Mozilla retains full power to keep bitcoin or to convert it into dollars without losing value, whichever seems more prudent at the time. | |||
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<h5> Does giving bitcoin result in more of my charitable donation going to transaction fees?</h5> | |||
While Mozilla may elect to have Coinbase convert some donated bitcoin into United States dollars, Coinbase waives all transaction fees for nonprofits who use its service, including Mozilla. That means the value in US Dollars of the bitcoin received by Mozilla (and the U.S. dollars it receives if it converts its bitcoin to cash) is the same amount donated by the donor and/or converted by Mozilla, without further reduction. | |||
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<h5>Is it tax-deductible to donate using bitcoin?</h5> | <h5>Is it tax-deductible to donate using bitcoin?</h5> | ||
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In most cases, Mozilla requires only an email address, which is necessary so that Mozilla can send them an acknowledgment letter for tax purposes. | In most cases, Mozilla requires only an email address, which is necessary so that Mozilla can send them an acknowledgment letter for tax purposes. | ||
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For bitcoin contributions of more than $5,000, and other contributions for which the donor provides Form 8283 to Mozilla for signature, Mozilla expects to file a Form 8282 with the IRS in connection with | For bitcoin contributions of more than $5,000, and other contributions for which the donor provides Form 8283 to Mozilla for signature, Mozilla expects to file a Form 8282 with the IRS in connection with any subsequent disposition of the donated bitcoins during the three years following the gift. In such cases, we will request the donor’s name, address, and U.S. tax identification number so that we can properly complete our tax forms. Typically, the donor is required to provide that information to Mozilla on a Form 8283 in any event, in order to secure his or her own tax deduction (see above). If we do not hear from a donor within 90 calendar days from the date of his or her donation, we reserve the right to file the Form 8282 using our best available information. | ||
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<h5>How secure is Coinbase?</h5> | <h5>How secure is Coinbase?</h5> | ||
Coinbase is committed to keeping its platform secure by encrypting all sensitive customer information and storing 97% of funds offline to protect against theft. Coinbase also utilizes an active community of security researchers to encourage the continuous auditing of their platform. For more information on the measures Coinbase takes to protect your funds and information, visit their Security page: | Coinbase is committed to keeping its platform secure by encrypting all sensitive customer information and storing 97% of funds offline to protect against theft. Coinbase also utilizes an active community of security researchers to encourage the continuous auditing of their platform. For more information on the measures Coinbase takes to protect your funds and information, visit their Security page: | ||
https://www.coinbase.com/security | https://www.coinbase.com/security | ||