Browse Prior Art Database

Method and System for Providing Tax Deductible Anonymous Charitable Donations via Cryptocurrency

IP.com Disclosure Number: IPCOM000254240D
Publication Date: 2018-Jun-13
Document File: 2 page(s) / 23K

Publishing Venue

The IP.com Prior Art Database

This text was extracted from a PDF file.
This is the abbreviated version, containing approximately 52% of the total text.

Method and System for Providing Tax Deductible Anonymous Charitable Donations via Cryptocurrency

In charities, there are several ways of donating anonymously, however each way contains an important drawback, for instance cash sent in a mail is not secure and risks theft by dishonest workers. Anonymous online donation services charge high fees (4- 5%) for donors performing transactions. Users are able to take advantage of paycheck deductions of fiat currency provided by employer, assuming the employer allows the anonymous option and don't charge fees for the service, but this applies only to employees of the particular employer. Sending cryptocurrency directly to a charitable organization's wallet is a good solution, however, it leaves the donors with no official record in order to itemize charitable donation to receive tax deduction. Disclosed is a method and system for providing tax deductible anonymous charitable donations via cryptocurrency. The method and system enables a donor to make anonymous donations of cryptocurrency directly to a charitable organization and receive confirmations of tax deductibility on behalf of the charitable organization via a third-party service, acting as an intermediary, such that the donor is able to claim an itemized deduction for the donation, without the charity ever seeing any identifying information about the donor. In accordance with the method and system, the donor is initially allowed to register with an independent online service (e.g. commercial entity) by providing the details such as, but not limited to, name, address, email address, and a user name and password. The donors do not necessarily provide any details such as, but not limited to, credit/debit card, bank information, crypto wallet address or any other sort of financial information to the independent online service. The method and system allows the charitable organization to register with the independent online service by providing the details such as, but not limited to, name, address, email address, and proof of the status as a tax deductible charitable organization. Further, the independent online service lists the charities that accept the form of anonymous donation, along with any other optional information such as, but not limited to, description of the charity, a link to the charity's website, and type of cryptocurrencies the charity accepts. In an embodiment, the method and system permits the charitable organization and the independent online service to advertise a cryptocurrency address for accepting donations along with the instruction such as, but not limited to, including specific text in the memo line of the cryptocurrency transaction consisting of an identifier defined by the independent entity, donor registered user name with the independent entity, space character and any other mem...