Fr33 Aid Abandons Non-Profit Tax Status in Favor of Bitcoin

April 15th, 2013   Submitted by Davi Barker

Fr33Aid_200x200Exciting news from the world of Bitcoin this Tax Cattle Day. Today is the day, with fear in our heart, we submit to the human farmers who fleece us under threat of violence. But today Fr33 Aid is making the courageous move of declaring their financial independence by willfully and publicly severing their ties with the IRS, forsaking all the banking privileges that entails, and announcing themselves as an entirely bitcoin based organization. As far as I know they are the first charitable organization to do this. I hope you can appreciate how radical this is.

Many organizations seek non-profit recognition from the IRS in an attempt to protect themselves from asset confiscation. In April 2012, Fr33 Aid applied for this privileged status, but since then the process has been nothing but a bureaucratic nightmare. Today Fr33 Aid announced they have abandoned their IRS application and adopted bitcoin as their primary financial instrument.

Fr33 Aid Treasurer, Teresa Warmke said:

“Now that there are ways for us to do banking without government involvement, we decided fulfilling (IRS demands) would not be a responsible way for Fr33 Aid to spend its money nor for our volunteers to spend their time.”

They determined that their attempt to comply with the IRS’s confusing demands was  not only unnecessary, but counterproductive to their mission of supporting volunteers who provide first aid and educational services at liberty-oriented events, and demonstrating the value of voluntary mutual aid. By making this bold transition into a bitcoin based organization they will be able circumvent the complex and burdensome requirements of state regulated banks, retain complete control over their assets, and focus entirely on their important mission. Teresa adds:

“It feels great to stop doing business with government agencies now!”

This as an important step toward the development of a robust non-profit sector in the bitcoin economy. Further, Fr33 Aid’s Director of Operations, Dr. Stephanie Murphy and Treasurer Teresa Warmke will participate in a panel about Bitcoin for Non-profit Organizations at the Bitcoin 2013 conference in San Jose, CA next month. They will be joined by Angela Keaton of AntiWar.com and Carla Gericke of the Free State Project.

Fr33 Aid is keeping their current bank account in order to accept dollar donations via check, credit card, PayPal and Dwolla, but the account will be kept as empty as possible to minimize the risk of either bank or government confiscation in the future. Teresa says:

“We don’t consider any of these payment methods as trustworthy as direct bitcoin donations. In the future, any donations we receive via traditional banking methods will be converted to bitcoin in a timely manner.”

Fr33 Aid is still committed to the level of transparency that the state requires from recognized non-profit organizations. They publish an annual report on their site with at least as much information as is normally disclosed on IRS Form 990.

You can send Fr33 Aid bitcoin donations to: 1Fr33Aidr4gokeCcHHxbnDi8vasKHEaRUm

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19 Responses to “Fr33 Aid Abandons Non-Profit Tax Status in Favor of Bitcoin”

  1. Seth KingNo Gravatar says:

    If they’re still accepting Dollar donations, how revolutionary is this? I mean, all they’ve basically said is that they’re no longer going to jump through hoops for tax exemption. They’re still paying taxes, I presume?

    I look forward to the day when medical professionals disobey all unjust government mandates.

    • Davi BarkerNo Gravatar says:

      I don’t see how accepting dollars makes it any less significant. MtGox accepts dollars. BitInstant and all the others accepts dollars. The point is they are not keeping dollars. Not attempted to satisfy whatever existing financial requirements exist. I don’t think I’ve seen anything about them paying or not paying taxes, but I’m not sure where that would even come up, expect perhaps sales tax or something when they absolutely have to use dollars.

      • Seth KingNo Gravatar says:

        If they’re still receiving Dollars into their bank account they’ll be expected to pay taxes.

        I guess I’m just failing to see the revolutionary part of this story.

      • HReardenNo Gravatar says:

        That’s a good point. You purchase Bitcoin with FRN dollars. The value of things including Bitcoin is measured in dollars. The value of everything is tied to dollars in some way. Yes, even Bitcoin.

        $

    • HReardenNo Gravatar says:

      If they were non-profit they were not paying taxes. Are they now now for profit?

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    • HReardenNo Gravatar says:

      Why would an organization not accept dollar donations? I accept dollars. If someone wants to donate dollars they can donate them to me.

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      • Seth KingNo Gravatar says:

        I’m not saying they shouldn’t. I’m just saying they haven’t done anything revolutionary. Can anybody point out the me what is revolutionary about what they’ve done?

        They were already accepting Bitcoin donations. The only difference between today and yesterday is that they’ve given up applying for tax exempt status. That’s not revolutionary.

        Don’t get me wrong. I love Free Aid and what they’re doing. I’m just not seeing anything here that’s ground-breaking.

        • HReardenNo Gravatar says:

          Ok. You said they are not doing anything revolutionary. Uh, btw, has anyone said they are doing something revolutionary? I didn’t see that word in the article as a description of what they have done.

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  2. MAMNo Gravatar says:

    Baby steps nobody learns to walk in a day.

    • Seth KingNo Gravatar says:

      I do like the fact that they aren’t going to jump through government hoops to get tax exempt status. Of course, if they end up paying a bunch of taxes I’m not sure it’s a real victory. Which is worse, paying taxes or jumping through government hoops for the privilege of tax exempt status? I’m sure arguments could be made for either side.

      So, really, I’m not interested in that debate. I think really it’s a lose-lose situation.

      Not getting tax exempt status ANNNNNNDD not paying taxes. Now THAT’S a win-win, in my book.

  3. MAMNo Gravatar says:

    And that’s why we have Agorism!

    • HReardenNo Gravatar says:

      We? are you working for Fr33 Aid?

      • MAMNo Gravatar says:

        This comment was in response to this “Not getting tax exempt status ANNNNNNDD not paying taxes. Now THAT’S a win-win, in my book.”

        Counter economic business doesn’t file for tax exempt status, nor do they pay taxes.