Watch out for potential tax pitfalls of donating real estate to charity

Watch out for potential tax pitfalls of donating real estate to charityCharitable giving allows you to help an organization you care about and, in most cases, enjoy a valuable income tax deduction. If you’re considering a large gift, a noncash donation such as appreciated real estate can provide additional benefits. For example, if you’ve held the property for more than one year, you generally will be able to deduct its full fair market value and avoid any capital gains tax you’d owe if you sold the property. There are, however, potential tax pitfalls you must watch out for:

Should your nonprofit accept digital currency donations?

Should your nonprofit accept digital currency donations?When United Way began accepting Bitcoin contributions a few years ago, many not-for-profits started to rethink their policy against accepting digital (also known as virtual and crypto) currency donations. It’s understandable if your organization remains wary of money that’s neither printed nor backed by a central bank or government. But there are potential advantages to accepting this uniquely 21st century form of support.