Can I give company stock?

Absolutely! If you are employed by a publicly traded company and receive stock as part of your compensation, you can donate that stock with ease through the Overflow platform.

Please note that your company may restrict when employees can give stock. If you received company-distributed stock as an employee and the trading window is not open, your brokerage will likely reject the transfer request. Therefore, we suggest you only donate stock when your company’s trading window is open (typically every quarter for 3 to 4 weeks at a time) if those restrictions apply to your role.

What specific stock can be donated?

Overflow supports the transfer of any publicly-traded stock that is exchanged on the US stock market. Overflow also supports the transfer of ETFs and Mutual Funds, but there may be brokerage-imposed restrictions on the transfer depending on the fund and gift value. If that is the case, Overflow’s concierge services will work with you directly to understand the restrictions and implications.

What is the Tax Benefit of donating appreciated stock

Donating appreciated stock that you’ve held for over a year could allow you to save up to 20% in capital gains taxes and potentially up to 37% in federal income taxes on the charitable donation value of your gift based on your tax bracket when itemizing deductions. To understand the full tax benefits of giving appreciated stock, including potential state tax savings, please consult with your tax professional for information about your personal tax implications.

Can I give from my retirement account?

It depends! Overflow can process all whole shares of publicly traded stock, including from retirement accounts (401K, 403b, Roth IRA, and Traditional IRA). However, donors will incur a tax penalty if they remove retirement funds early (before age 59.5) and some employer-sponsored retirement plans will not allow early fund distribution at all. Because of these restrictions and potential penalties, we highly recommend consulting your tax professional before donating these types of assets. If you decide to proceed, Overflow’s concierge services will work with you directly to facilitate the transfer of these assets.

Does 12Stone accept gifts from my brokerage account?

Overflow currently offers account connections with most major brokerages including Charles Schwab, Fidelity, and E*Trade. If Overflow does not have a direct connection with your brokerage, you can still initiate your stock gift through our manual online flow, which you will be prompted to enter if your brokerage is not directly supported.

What is Cryptocurrency?

Cryptocurrency is also known as virtual currency or crypto. It is virtual or digital money in the form of tokens or coins. Designed as an alternative to sovereign fiat currency, cryptocurrencies can also be traded, bought, and sold on exchanges with U.S. dollars and other traditional currencies.

Records of cryptocurrency transactions are kept in public, digital ledgers called blockchains. In essence, a blockchain is a group of people, called miners, who lend their computing power to verify other users’ transactions so that the same token or coin isn’t spent twice.

Is the process of giving cryptocurrency safe and secure?

Our third-party platform, Overflow, provides the highest level of safety by using blockchain security. Relying on the networks of thousands of computers to verify transactions, Overflow drastically minimizes the risk of cyber-attacks or fraud.

What is the Overflow Platform?

The Overflow platform is the software12Stone uses to process cryptocurrency donations. Overflow enables churches and nonprofits like12Stone to securely receive cryptocurrency donations. Then those donations are exchanged for usable currency, such as US dollars.

Learn more about Overflow

Is a Cryptocurrency donation to 12Stone tax-deductible?

Yes. Your tax deduction will be equal to the fair market value of the donated cryptocurrency as determined by a qualified appraisal.

Since nonprofits are exempt from paying capital gains tax on the sale of assets, the full value of your cryptocurrency donation, along with your tax deduction, stays intact.

For example, suppose you purchase cryptocurrency for $3,000. Then, by the time you make a donation, your crypto valuation is $11,000. Since your direct donation is a non-taxable event, the nonprofit receives the full value of your donation — $11,000.

On the other hand, if you sold that cryptocurrency now valued at $11,000, you would pay $1,904 in capital gains tax (assuming a federal tax rate of 23.8% and no state or local taxes). Your donation of the after-tax proceeds would then be only $9,096.

What’s the advantage of donating Cryptocurrencies?

Donating cryptocurrency to nonprofits has several advantages. It’s a convenient and secure way to give to your favorite causes and help change lives.

To donate cryptocurrency to 12Stone, follow the steps in the form above and your donation will be complete in just a few minutes.

As with any other donation type, donating crypto qualifies you for the tax benefits associated with a charitable contribution.

Donating cryptocurrency is also one of the most tax-efficient ways to support a nonprofit. Since the IRS considers cryptocurrency to be a noncash asset, a direct charitable donation is a non-taxable event. In other words, you avoid paying the capital gains tax you would incur if you sold your cryptocurrency for more than you bought it.

Avoiding the capital gains tax through a direct donation also means that your gift to the receiving nonprofit is maximized.

Do charities that accept cryptocurrency donations prefer Bitcoin over other cryptocurrencies?

While Bitcoin is the largest and most widely accepted cryptocurrency, most charities who accept cryptocurrency donations work with a vendor to process them and can consequently accept dozens of different crypto donations.

Compassion works with Engiven to accept 39 of the most prevalent cryptocurrencies.

Bitcoin (BTC), Bitcoin Cash (BCH), Ethereum (ETH), Litecoin (LTC), Zcash (ZEC), ChainLink (LINK), Orchid (OXT), Dai (DAI), Basic Attention Token (BAT), Amp (AMP), Compound (COMP), PAX Gold (PAXG), Ox (ZRX), Balancer (BAL), Curve (CRV), Decentraland (MANA), Kyber Network (KNC), Maker (MKR), Ren (REN), Storj (STORJ), Synthetix (SNX), UMA (UMA), Uniswap (UNI), Yearn.Finance (YFI), Aave (AAVE), Filecoin (FIL), Enjin Coin (ENJ), Bancor Network Token (BNT), 1inch (1INCH), Skale (SKL), The Graph (GRT), Loopring (LRC), Sandbox (SAND), Somnium Space (CUBE), BarnBridge (BOND), Sushi Swap (SUSHI), Injective Protocol (INJ), Livepeer (LPT), Dogecoin (DOGE)

What will 12Stone do with my cryptocurrency donation?

Overflow will immediately exchange your donated cryptocurrency for US Dollars at the current exchange rate. Then the proceeds will be deposited into12Stone’s bank account. Because12Stone does not directly trade in cryptocurrency, the organization will not hold any donated cryptocurrency for a potential rise in value.

How will my cryptocurrency donation to 12Stone be receipted?

Donors who provide an e-mail address will receive a PDF receipt from the Overflow platform. The receipt will include the type and number of coins donated, the date and time of the donation, the fund given to and other details.

A formal year-end tax receipt will also be available for download from 12Stone’s website to donors who provide their name and e-mail address. It will detail crypto donations along with donations of any other type made to 12Stone during that calendar year. Donors will be notified by e-mail when the year-end tax receipt is available, typically by the end of January.

A formal year-end tax receipt cannot be made available to donors who choose to give anonymously because the IRS requires each receipt to be made out to a named individual or company with a tax ID number.

How should a donor valuate their cryptocurrency donations for federal income tax purposes?

For U.S. tax purposes, virtual currency transactions must be reported by the taxpayer, in U.S. dollars, at the fair market value on the date of the donation. If a virtual currency is listed on an exchange and the exchange rate is established by market supply and demand, the fair market value of the virtual currency is determined by converting the virtual currency into U.S. dollars at the exchange rate in a reasonable manner that is consistently applied.

Is it more expensive for a nonprofit to accept cryptocurrency donations compared to credit card donations?

As with credit card vendors, cryptocurrency processing vendors (in 12Stone’s case, Overflow), differ in their fees. However, in most cases the fees associated with accepting and converting cryptocurrency are similar to those associated with processing credit card donations.

How are cryptocurrency donations treated for tax purposes?

For U.S. tax purposes, transactions using virtual currency must be reported in U.S. dollars. Therefore, taxpayers will be required to determine the fair market value of virtual currency in U.S. dollars as of the date of donation. If a virtual currency is listed on an exchange and the exchange rate is established by market supply and demand, the fair market value of the virtual currency is determined by converting the virtual currency into U.S. dollars (or into another real currency which in turn can be converted into U.S. dollars) at the exchange rate, in a reasonable manner that is consistently applied. Donors who give cryptocurrency donations will receive an electronic donation receipt (through the Overflow donation platform) in US dollars with comprehensive details about each transaction.

Why do I need to link my credit/debit account with Plaid?

Linking your account with Plaid is what makes RoundUps possible. It lets us calculate the correct RoundUp amount by reading the transaction amounts from the linked card or bank account.

What data are you tracking from my account?

We respect your right to data privacy, which is why we only use what’s necessary to make RoundUps possible. We read only the transaction amount and date from each purchase you make and record that amount. This is how we calculate your RoundUp balance.

Why do I need to link two accounts?

It’s actually to give you flexibility over how you manage your money. You are free to use the same account for both rounding up your purchases and giving contributions.

What’s my Donor Profile?

Your donor profile is your personal dashboard that keeps track of all your charitable giving through Overflow, including RoundUps. Access your donor profile by using this link: profile.overflow.co/login.

I canceled RoundUps, but want to start again. How do I do that?

You can restart RoundUps by visiting your organization’s giving page and setting up a new Round-Ups gift just like you did the first time. You’ll have the opportunity to select the same or new accounts.

When I cancel RoundUps, what happens to the balance I’ve accrued toward my next Round- Up contribution?

Any balance you’ve accrued won’t be donated. If you log in to your donor profile and visit the RoundUps tab, you’ll see the balance set to $0.

When I cancel RoundUps, what happens to the RoundUps account and Payment account linked to it?

We’ll unlink your RoundUps account used to monitor purchases and calculate the round up amount. Your payment method will be retained, so that we don’t interrupt any recurring gifts you might have. You can manage your saved payment methods in the Settings section of your donor profile.

How I do create a Donor-Advised Fund?

You can start by going here!