5. So another benefit in POOM integration is it gives Fiat buyers an additional tax-deductible way to invest in BBP without going through an exchange; and it also decreases our monthly net sales pressure from coin emissions (as less rewards will be sold on the exchange for electricity/mining and instead be repaid for orphan expenses). Its also good in the sense that it increases our real world utility.
I am not a tax professional or a US citizen but the issue has been mentioned else where and I decided to look for myself so I found this
https://www.irs.gov/publications/p526Use CTRL+F search for "Contributions From Which You Benefit"
"If you receive a benefit as a result of making a contribution to a qualified organization, you can deduct only the amount of your contribution that is more than the value of the benefit you receive. Also see Contributions From Which You Benefit under Contributions You Can't Deduct, later.
If you pay more than fair market value to a qualified organization for goods or services, the excess may be a charitable contribution. For the excess amount to qualify, you must pay it with the intent to make a charitable contribution.
Example 1.
You pay $65 for a ticket to a dinner dance at a church. Your entire $65 payment goes to the church. The ticket to the dinner dance has a fair market value of $25. When you buy your ticket, you know its value is less than your payment. To figure the amount of your charitable contribution, subtract the value of the benefit you receive ($25) from your total payment ($65). You can deduct $40 as a charitable contribution to the church.
Example 2.
At a fundraising auction conducted by a charity, you pay $600 for a week's stay at a beach house. The amount you pay is no more than the fair rental value. You haven't made a deductible charitable contribution."
I am aware of those for a completely different reason - when we were considering becoming a 501c3, we evaluated those rules as: A qualified 501c3, who already has the 501c3 status, is going to hold an event. The same 501c3 that is donated to must provide some type of receipt to the participant, and that shows the allowable net deduction. For example, if BiblePay was 501c3 "abc123" and we accepted tax deductible contributions, and we decided to hold a web event where we charged $20 fiat to attend but provided you with $10 of BBP at the event, your net deduction is $10 (not $20) because you received a rebate or benefit for coming (from the same 501c3).
However, I don't think this applies to two different organizations working in parallel to each other. First of all, we aren't a 501c3, Cameroon is.
So they are one distinct organization providing you with a distinct tax deduction for sponsoring a child.
We are a non 501c3 organization that provides you with mining rewards but only for participants who already sponsor a child.
So there is no "Sponsor minus event" in this case.
In addition, the mining rewards through our GSC campaigns are based on your long term status of simply sponsoring a child (not based on how much of a tax deduction you are getting).
Also - we are an international DAC (not a US org), so our GSC reward structure and mining reward structure is not based on one particular countries law.
However, I encourage each participant to consult their own tax attorneys for tax advice for their personal situation.
I was thinking about this a little more during church, and I have an additional perspective to add that I believe is more accurate:
We are not claiming that BBP received from POOM (or mining) is deductible.
We are only stating that Fiat contributions to Cameroon-One for sponsoring children is tax deductible (because they provide a 501c3 generated receipt in your name).
The BiblePay you receive and file on your tax return has its own cost basis. So in the case of POOM, its most likely costing a fraction of your normal mining costs (or zero) - although I must stress we don't provide tax advice for mining operations.