This method lets you donate, stake, and earn rewards for charities in a way that benefits everyone.
Here’s how it works: When you donate AVAX to a special charitable account called a Donor-Advised Fund (DAF). It’s like putting money into a charitable savings account.
You get an immediate tax benefit for donating and can keep your funds growing by staking them. Staking means your AVAX earns interest, called “yield,” which grows over time. This yield can then be used to issue grants to U.S. nonprofits whenever you choose.
According to Givepact , you don’t have to worry about paying taxes on the increase in value of your AVAX, which is called capital gains tax. So, if the value of AVAX goes up, you don’t pay extra taxes on that increase when you donate it.
Did you know that you can donate and stake your $AVAX and use the yield to issue grants to your favorite U.S. nonprofits forever? Let’s talk about #donoradvisedfunds (DAFs). pic.twitter.com/1AFp3TeOK9
— Givepact (@give_pact) November 27, 2024
With this system, you’re not just making a one-time donation. Your funds can keep working for your chosen charities, earning rewards for years to come. Whenever you want, you can direct your DAF custodian to send a grant to any nonprofit in the U.S. You’re essentially creating a lasting impact, even after your donation is made.
Donors can then direct their DAF custodian to issue a cash grant to their favorite nonprofits anytime. The best part about contributing AVAX directly to a DAF is that you don’t pay capital gains taxes on the token’s appreciation. pic.twitter.com/22dOVqGZJu
— Givepact (@give_pact) November 27, 2024
This method is a game-changer for people who want to make a difference in their communities but also want their donations to have lasting effects. Plus, donating to AVAX means you’re using a modern, tech-savvy way of giving back, and that could inspire others to do the same.
Disclaimer
The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment, and informational purposes only. Any information or strategies are thoughts and opinions relevant to the accepted risk tolerance levels of the writer/reviewers and their risk tolerance may be different than yours. We are not responsible for any losses you may incur due to any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments so please do your due diligence. Copyright Altcoin Buzz Pte Ltd.
