Americans are divided on cryptocurrency. For many younger investors, it represents innovation, opportunity, and a glimpse into the future of finance. For others, it can feel uncertain, risky, and difficult to understand. But one thing is clear: Crypto is here to stay. And now, WatersEdge makes it easy to use cryptocurrency to support the causes you care about.
Recently, WatersEdge received its first Bitcoin – the most recognized cryptocurrency worldwide – and it was used to open a donor advised fund (DAF). It was the first in the nearly 80-year history of WatersEdge.
A WatersEdge DAF can make distributions to a donor’s chosen faith-aligned ministries and non-profits. Contributions made to a DAF are invested and grow tax-free, providing an even greater opportunity to distribute or fund distributions to your favorite charity or ministry.
“Many individuals who are younger continue to rely on internet-based advising, or robo-advising, to give them solutions. And this was no exception,” said Preston Hudson, director of planned giving at WatersEdge. Hudson was able to assist with the account creation of this DAF. “And so, when clients look for a faith-aligned way to handle cryptocurrency gifts, our name circulates across state lines mainly through our website, where you can reach out to us directly.”
Separate from cryptocurrency donations, WatersEdge also offers Kingdom Investment accounts. WatersEdge uses those invested dollars to provide competitive loans to churches to purchase, build, renovate, or refinance their facilities. The interest these congregations pay on their loans provides a return on the investment.
Whether it’s to fund a DAF, endowment, charitable trust, or some other giving solution, WatersEdge can help churches, individuals, and others liquidate non-cash assets.
“For those things that might be more difficult to sell, they don’t have to worry about it. It’s not a headache for them. The donor may need an appraisal so that they can take their tax deduction, but it eliminates the work in trying to sell something,” said David Depuy, chief investment officer at WatersEdge. “If it’s appreciated, it also eliminates their requirement to pay tax on the realized gain. So, there’s a monetary benefit, and then there’s a non-monetary benefit, and that’s just not having to worry about it.”
Cryptocurrency as well as stocks (publicly traded and private) and bonds aren’t the only non-cash assets WatersEdge is able to liquidate for churches and individuals. Recent examples include homes, precious metals, artwork, and a firearms collection. “Basically, the property owners would just deed the property over to [WatersEdge]. Once we have ownership of the property, we work with our partners or vendors to market and sell the donated assets,” Depuy said.
If you are thinking about opening a donor advised fund with WatersEdge that will multiply your gifts to your local church or favorite ministry, Hudson recommends doing so by November of each year.
“Already having a vehicle to receive a gift before the end of the year will make it a lot less stressful on the taxpayer when they’re meeting early with their tax consultants, trying to get their taxes and liability estimated for the following year,” Hudson said.
If you would like to learn more about the types of giving solutions offered by WatersEdge, visit watersedge.com/giving-solutions-guide/ or call 800-949-9988 to connect with one of our experts.
