For the most part. For (2), I primarily meant stuff like KYC and anti-money laundering measures.
If you haven’t already, it’s worth thinking about the tax implications as well. My gut feeling under US law is that all of this interest might be taxable as unrelated business income (UBIT) because running a stablecoin might not be substantially related to the charitable, educational, or other purpose that would be the basis of the organization’s exemption. It would be a means of generating profit for the organization’s charitable mission, which is the point of the UBI tax. The point of the UBI tax is to prevent non-profits from having an unfair advantage over for-profit businesses in commercial activity, which seems to fit here.
Generally, interest is excluded from UBI, but that may only apply to interest from ordinary and routine investments. I can’t give you legal advice as to an answer even if I were qualified; I can only say that it is a question that crossed my mind.
For the most part. For (2), I primarily meant stuff like KYC and anti-money laundering measures.
If you haven’t already, it’s worth thinking about the tax implications as well. My gut feeling under US law is that all of this interest might be taxable as unrelated business income (UBIT) because running a stablecoin might not be substantially related to the charitable, educational, or other purpose that would be the basis of the organization’s exemption. It would be a means of generating profit for the organization’s charitable mission, which is the point of the UBI tax. The point of the UBI tax is to prevent non-profits from having an unfair advantage over for-profit businesses in commercial activity, which seems to fit here.
Generally, interest is excluded from UBI, but that may only apply to interest from ordinary and routine investments. I can’t give you legal advice as to an answer even if I were qualified; I can only say that it is a question that crossed my mind.
I’ll DM you an e-mail address.