Enhance Online Signature Legitimateness for Nonprofit in UAE with airSlate SignNow

How to eSign a document: online signature legitimateness for Nonprofit in UAE

it seems like a week doesn't go by these days without a client or prospective client asking about cryptocurrency can my non-profit accept donations of crypto can we invest in crypto well in this short video I'm going to take on these questions and hopefully shed some light on this very relevant topic [Music] hi I'm Greg McRae founder and CEO of foundation group and welcome once again to our 501c3 University Channel nonprofits and crypto interest in this topic has steadily been rising for years and as of our shooting of this video July 2022 cryptocurrency valuations have taken it on the chin so some people are far less eager to jump into it right now but people still want to know how it all works so the first question we'll tackle is whether or not Charities can accept donations of cryptocurrency well that answers an easy one and it's yes they can Charities can accept donations of pretty much anything so long as the anything is legal and cryptocurrency is legal now here's an important fact to know cryptocurrency may be legal but it isn't currency at least not in the eyes of the IRS digital currencies are actually considered property now the rules around donations of Bitcoin ethereum xrp whichever one you're talking about are the same as if you were donating a box of used clothing to Goodwill it's considered an in-kind gift not a gift of cash or cash equivalent security like stocks or bonds now because of this non profits that receive a gift of cryptocurrency they can't State the value on the donor receipt just like Goodwill is not going to value your clothes for you now the acknowledgment statement you give the donor but simply State when the gift was made what it was and what the quantity was and a thank you it's up to the donor to substantiate the valuation on their own tax return should they choose to claim a tax deduction on the gift for the charity the book value of the gift is going to be the fair market value on the day it was donated now the other question we get is whether or not a charity can invest in Bitcoin or some other cryptocurrency now again the answer is yes but it's a very qualified yes every state has adopted a law called the uniform prudent management of institutional funds act now the ACT requires Charities trusts and anything or anyone else with fiduciary responsibilities to consider the risk return spectrum of their entire portfolio investment and invest prudently so what does this mean for investments in crypto well they're not disallowed but their extreme volatility means that most Charities won't hold much in order to maintain a well-diversified portfolio holding too high of a percentage of a non-profit's Assets in these digital currencies runs the risk of violating state law which leads me back to close the loop the final question we get is do we have to immediately liquidate donations of cryptocurrency it seems like most Charities do that and yes you're right most do and the reason has everything to do with protecting the value of assets at the time of the gift get a gift of Bitcoin and sell it immediately right well maybe maybe not again you have to consider The Prudent funds management rule a small holding of cryptocurrency well it's not going to violate that rule another factor to consider is donor intent the act specifies that Charities have a responsibility to the extent legally possible to honor donor intent as to their gift for example if a donor gives cryptocurrency and wants the charity to keep that gift as a cryptocurrency endowment the charity can do so without violating the act the more you know as usual we're just hitting the high points on this but I sincerely hope this brief discussion helps shed some light on a very interesting and relevant topic if you like this video please click the like button we say this every time but it really does help us get this out to more people subscribe below if you haven't already and click the little bell icon to be notified of new content when we post it thanks for watching we'll see you next time [Music] thank you