In its latest move, the Internal Revenue Service or IRS has officially recognized the BitGive Foundation is a charitable organization in the US. The first information about the status of the organization came when the BitGive Foundation itself announced that it has become the first nonprofit Bitcoin organization to achieve 501(c)(3) status.
When some organization is put under 501(c)(3) by the Internal Revenue Service or IRS recognizes officially that it is a charitable organization in the US, any gains made by the organization are not taxed as every money is aimed towards the supported causes. BitGive executive director Connie Gallippi showed her happiness about the decision by the IRS.
She said that the new status does gives the BitGive Foundation legitimacy with the US government, which has been a huge struggle for Bitcoin as far as businesses are concerned. Her charity organization is dedicated to improving the public health and environment worldwide by giving funds that it raises to various philanthropic organizations and projects.
The beautiful part about BitGive Foundation is that whereas so many other such organizations accept fiat in donation, this organization accepts corporate and individual donations in Bitcoin. The major donors to the organization include BitPay, Xapo, LibraTax and Roger Ver among, etc. amongst others.
The New Status under Section 501(c)(3) Will help BitGive Develop Endowment
Gallippi informed that the organization’s long-term functionality is to have the equivalent of a multi-million-dollar investment trust in Bitcoin, from which it can give to causes and projects. However, the latest decision from the IRS is expected to further help the organization as it won’t be asked to pay for its gains.
She further made it clear that the BitGive Foundation has the resources and it is evaluating organizations and providing essentially grants. According to her the organization wants to be doing its mission-based work and that is the whole point. She says that for all the work the organization has taken it has to have the ‘endowment.’
Gallippi showed her happiness about securing 501(c)(3) status and said that BitGive now has the green light to build that fund which according to her is going to work as an endowment. She says that the incoming donations will rise in value over time and the foundation will be able to sustain itself and provide more charitable giving based on those gains.
To contact the reporter of this story: Deepak Tiwari at firstname.lastname@example.org