Our clients purchased 100 bitcoins for a total of $50,000 in 2013. bitcoins are now worth $7,500 each, after reaching a peak of over $17,000. the husband thinks they should consider selling now, before the bitcoin market bottoms out. the wife is concerned with paying capital gains tax on so much money and wonders about making a significant charitable contribution but agrees that they should sell the bitcoin. our client is comfortable gifting $250,000 to charity but cannot agree on where to make the contribution. the husband doesn’t think it will save them that much in taxes and worries about making significant donations in one year. he’s heard good things about setting up a private family foundation and wonders if that is a good way to spread out the contributions over several years. the wife wishes to donate it to their high school alma maters, public schools in ohio. prepare a memo making a recommendation on how our clients should structure their contribution in order to receive the best tax advantage, including a projected tax liability assuming the bitcoins are sold in 2019. you can find their 2018 tax return in their permanent file, and assume future income, deductions, withholdings – except for the sale of the bitcoin – will remain the same. write a memo advising the clients.