The American Cancer Society Is Asking for Cryptocurrency Donations to Offset Pandemic-Related Shortcomings; The Shadowy Fundraisers for Good Causes

The ACS will accept cryptocurrency donations to help “offset the funding shortfall caused by COVID-19.” By ACS estimates, COVID-19 reduced the organization’s ability to fund cancer research by 50 percent in 2020 “the lowest investment this century.” The ACS is hoping that incoming crypto donations will help re-establish research funding for cancer discoveries and treatment developments.

The ACS also maintains that donating cryptocurrency directly to the organization’s Cancer Crypto Fund is “more tax efficient than donating cash and can save you money” because it counts as a non-taxable event. What this means is that you don’t owe capital gains tax on the appreciated amount but can still deduct it on your taxes.

“That means you're able to donate more to charity, as well as deduct more on your tax return,” the website states. “The difference? Sometimes more than 30%.”

To explain further, the IRS has stated that virtual currencies are considered property and not currency for tax purposes. According to an article by Forbes, this means that “a party selling, spending or otherwise disposing of virtual currency may be subject to capital gains or ordinary income tax.” But, the important thing to remember when it comes to donating to organizations like the ACS is that it is exempt an organization that is not generally taxed on income, even from the sale of appreciated property, or property that has increased in value over time. So as it stands right now, it appears that cryptocurrency could be the most tax-efficient way to donate to your favorite causes.

And even individuals are leaning into the world of cryptocurrency to raise much-needed funds. Take 6-year-old John Oliver (J.O.) Zippay and his family, for example. They are currently thanking the cryptocurrency community after popular crypto figures came together to help them with a crowdfunding campaign for Zippay’s leukemia treatment. Cobie, otherwise known as “Crypto Cobain,” is a popular crypto Twitter influencer who hosted a livestream event for Zippay. The family ended up with over $800,000 worth of donations when all was said and done, and after the event, John Zippay, J.O.'s father, shared a picture of his son holding a handmade sign that read, "Thank You Crypto Twitter."

"J.O. continues to inspire so many, and his battle with Cancer is a message of HOPE," the father wrote in the tweet. "From the bottom of our hearts we would like to thank everyone helping to support our family and blessing him with a great future."

Navigating the Cost of Treatment

The financial burden of a cancer diagnosis can be debilitating, and many people don't know where to turn when the medical bills start piling up. Some people look to various crowdfunding methods with online platforms such as GoFundMe. Others, like John Oliver Zippay's family, are lucky to have high-profile people in the cryptocurrency world help with their fundraising efforts.

But is cryptocurrency the best way to crowdfund for cancer patients? It's hard to say. But even still, the current popularity of cryptocurrency could potentially translate to better fundraising campaigns. Statista says that although cryptocurrency has done increasingly well in recent years, the price of Bitcoin and most other cryptocurrencies is generally erratic, meaning that price stability can be an issue. But Sam Bankman Fried, CEO of a cryptocurrency exchange company called FTX Exchange, thinks fundraisers have become increasingly prevalent within the cryptocurrency world because of the success of crypto over the last year.

"A lot of people in crypto made a lot money over the last year," Fried said in the livestream after he contributed to the fundraiser in an amount valued at $40,000 at the time of donation. "And, you know, I think that it took a lot of pressure off of people's personal finances and sort of gave them the space to think about how they could help others."

Crowdfunding, in general, can be a tough way to raise funds during a loved one's cancer battle. According to a study conducted by researchers at the University of California San Francisco, GoFundMe efforts often fall short. The study found that the average "goal" for patients on their GoFundMe pages is $10,000, but the average amount raised is less than a quarter of the goal at $2,125. Zippay's family found great success with crowdfunding, but the success stories can be few and far between.

Speaking with social workers affiliated with your cancer center can be an option for people who don't like the unpredictability of crowdfunding. Oftentimes they can help guide patients to helpful resources when the financial burden becomes too great. Patient assistance programs, for example, can be beneficial. Your social worker might point you to one of these programs when it comes to specific, expensive drugs because some pharmaceutical companies offer to help patients cover the cost.

Reaching out to various foundations can also be a viable option for cancer patients. There are many nonprofit and advocacy organizations that offer programs to help financially support a patient's cost of care. The Lazarex Cancer Foundation, for example, helps patients cover costs associated with clinical trials and other organizations like the American Cancer Society and the Cancer Support Community may help with travel costs for treatment.

Regardless, it's always a great idea to explore your options and talk to people who might be able to help. Dr. Allyson Ocean, a medical oncologist at Weill Cornell Medical Center, recommends finding an advocate within the medical field. Speaking from experience, Dr. Ocean knows having an medical advocate in your corner can make all the difference. She calls insurance companies all the time to help her patients get the treatment they need covered by insurance.

Paying for Cancer: Find Someone Who Will Advocate For You

"My best advice to work around the system of whether or not drugs or tests can be covered for cancer is to make sure you have an advocate in your field working for you," Dr. Ocean says. "The frustrating part for me is that sometimes we even have to educate the insurance companies and say, 'There's a reason why I want to use this medicine.’"

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