Donate Cryptocurrency
Yes, your cryptocurrency donation is *tax deductible! IFCJ offers the ability to give in the form of cryptocurrency in a tax-efficient way. Your contribution is tax-deductible to the fullest extent permitted by law.
If you have cryptocurrency, it’s simple to make a gift to the Fellowship. Using the button below you can make a gift conveniently from your account. Select the type of currency, the designation (how the funds are to be used) and the gift amount.
For more information concerning a gift or cryptocurrency, please contact IFCJ’s Vice President of Philanthropy at [email protected].
*Please consult your tax advisor.
Frequently Asked Question
Cryptocurrency is a type of virtual currency that uses cryptography to secure transactions that are digitally recorded on a distributed ledger, such as a blockchain. A transaction involving cryptocurrency that is recorded on a distributed ledger is referred to as an “on-chain” transaction; a transaction that is not recorded on the distributed ledger is referred to as an “off-chain” transaction.
Due to its tax treatment by the IRS, by donating appreciated crypto, you won’t owe capital gains tax on those appreciated assets as you would have if you had sold the crypto first.
Your charitable contribution deduction is generally equal to the fair market value of the virtual currency at the time of the donation if you have held the virtual currency for more than one year. If you have held the virtual currency for one year or less at the time of the donation, your deduction is the lesser of your basis in the virtual currency or the virtual currency’s fair market value at the time of the contribution. For more information on charitable contribution deductions, see Publication 526, Charitable Contributions.
A charitable organization can assist a donor by providing the contemporaneous written acknowledgment that the donor must obtain if claiming a deduction of $250 or more for the virtual currency donation. See Publication 1771, Charitable Contributions Substantiation and Disclosure Requirements PDF, for more information.
A charitable organization is generally required to sign the donor’s Form 8283, Noncash Charitable Contributions, acknowledging receipt of charitable deduction property if the donor is claiming a deduction of more than $5,000 and if the donor presents the Form 8283 to the organization for signature to substantiate the tax deduction. The signature of the donee on Form 8283 does not represent concurrence in the appraised value of the contributed property. The signature represents acknowledgement of receipt of the property described in Form 8283 on the date specified and that the donee understands the information reporting requirements imposed by section 6050L on dispositions of the donated property (see discussion of Form 8282 in FAQ 37). See Form 8283 instructions for more information.
