Frequently Asked Questions (FAQs)

Why the 501(c)(3) Public Foundation structure?

The DigiByte Alliance opted for a 501(c)(3) non-profit structure as the board of directors sought a reliable, legally compliant fundraising mechanism for the DigiByte ecosystem. Moreover, the tax advantages linked to donations to a 501(c)(3), its eligibility for government and corporate grants, and its function as a conduit connecting established businesses, governments, and institutions to new opportunities in the decentralized blockchain digital economy played a pivotal role in the selection of this structure.

Choosing to raise funds through a 501(c)(3) organization provides several key advantages:

• Tax Deductibility: Donations to a 501(c)(3) nonprofit organization can be tax-deductible for donors, making it an appealing choice for individuals and businesses aiming to reduce taxable income, thereby potentially increasing donation volumes.
• Grant Eligibility: A 501(c)(3) organization can apply for government and private grants, many of which are inaccessible to for-profit companies.
• Regulatory Oversight: 501(c)(3) organizations possess a longstanding tradition and legal framework and fall under the IRS’s regulation as they are obligated to report their activities and finances, providing an extra layer of accountability. 
• Broad Appeal: A traditional 501(c)(3) nonprofit can appeal to a wide donor base, including those who may be unfamiliar with blockchain technology. 

How will funds be allocated? 

A 501(c)(3) nonprofit organization such as the DigiByte Alliance has specific guidelines that it must follow in allocating funds to ensure it maintains its tax-exempt status. Here’s a general outline of how it works:

• Fundraising: The DigiByte Alliance generates funds through various avenues, including direct donations, grants, and fundraising activities. These resources are integrated into the organization’s overall financial plan.
• Compliance with Bylaws: All financial activities must be carried out in strict accordance with the DigiByte Alliance’s bylaws. The bylaws serve as an internal governing document, providing guidelines for decision-making processes, financial management, and the execution of the organization’s mission.
• Reporting and Compliance: The DigiByte Alliance is required to maintain accurate records of expenses and revenue, submitting annual reports to the IRS. These reports detail the financial operations of the Alliance and demonstrate alignment with the organization’s mission, crucial for maintaining tax-exempt status.
• Stewardship: The DigiByte Alliance is tasked with responsible stewardship of its resources, ensuring that funds primarily benefit its mission of growing the public DigiByte blockchain ecosystem over private interests. 

Can I give anonymously?

You can give up to $1000 anonymously in any crypto offered on Gemini. However, at this time, anonymous donations in DigiByte are not supported. We will provide an update on any changes to that policy.

Is my cryptocurrency donation tax deductible?

Your contribution is tax-deductible to the fullest extent permitted by law. For donors in the United States, the IRS has classified bitcoin as property for tax purposes. This means that when someone donates bitcoin and other cryptocurrencies to a 501(c)(3) nonprofit such as the DigiByte Alliance, donors do not have to pay capital gains tax and it is tax-deductible if you provide your KYC information. However, tax rules for cryptocurrency donations can be complex and may vary by region. We recommend consulting with a tax professional for advice on your specific situation.  

Can I donate to the DigiByte Alliance from outside the United States?

Yes, fiat and cryptocurrency can be donated to the DigiByte Alliance from anywhere around the world, with the exception that the DigiByte Alliance does not accept donations from individuals located in OFAC sanctioned countries due to US regulations.

What happens to my cryptocurrency once it is donated to the DigiByte Alliance?

The DigiByte Alliance accepts crypto donations directly via Engiven. To ensure immediate application of your generous support to our mission, any donations of assets that are listed on Gemini are instantly sold and converted to US dollars by Engiven. This approach allows us to mobilize your contributions swiftly, maximizing their impact in advancing the DigiByte blockchain, mitigating market value risk, and ultimately benefiting the community we serve. 

Do I get to vote on initiatives of the DigiByte Alliance?

While the generosity of donors to the DigiByte Alliance is greatly appreciated, the governance and voting rights are reserved for the members of its Board of Directors in accordance with our bylaws and pursuant to our 501(c)(3) structure. However, from time-to-time, the DigiByte Alliance may consider community feedback into its decision-making processes to determine the allocation of funds.

Does the DigiByte Alliance hold my data when I donate?

No, your data is collected by the third parties Virtuous and Engiven contracted by the Alliance for processing donations. Please see their terms of service for further questions.

https://raisedonors.com/privacy.html

https://engiven.com/privacy-policy

Are you affiliated with the other groups supporting DigiByte?

DigiByte has several autonomous groups supporting its network and we encourage the continued creation and growth of them as they are critical to maintaining the decentralization of the DigiByte ecosystem.  The DigiByte Alliance is not formally affiliated with any of these other groups.