How to Donate Cryptocurrency to Charity

In the ever-changing world of technology, cryptocurrency has become a game-changer, not just in finance, but also in the realm of charitable giving. As people look for new ways to support causes they care about, nonprofits are embracing the trend. Whether it's medical research or environmental protection, organizations are adapting to this modern form of generosity. With promises of enhanced transparency, security, and global outreach, crypto donations present an exciting opportunity for nonprofits to expand their horizons and make a real difference in the world.

Here are four solid reasons why incorporating crypto donations into nonprofit funding strategies just makes sense:

Tax Deductions

If you itemize deductions on Schedule A, you can deduct your crypto donations without worrying about capital gains tax.

Enhanced Security

Crypto transactions are encrypted and authenticated, ensuring robust security. Plus, charities never get access to your wallet's private keys, so your assets stay safe.

Speed and Transparency

Crypto transactions process quickly, often within the next business day. And since everything's recorded on the blockchain, anyone can verify the transaction — a big plus for maintaining transparency.

Aligning with Values

Crypto donations let you direct your funds to causes you care about, rather than them getting lost in general taxes. This can be particularly appealing for crypto investors with significant gains.

So, there you have it — four solid reasons why nonprofits should consider embracing crypto donations.

When it comes to accepting crypto donations, your organization has several avenues to explore, each tailored to fit your specific needs. For options 2 through 4, where your organization will handle the crypto directly, it's crucial to establish clear gift acceptance policies and ensure compliance with IRS regulations and accounting standards. These policies are akin to those for in-kind gifts of property, with additional considerations for managing potentially volatile coins and deciding when to convert crypto to cash.

Utilize an Intermediary 501(c)(3)

Partnering with another 501(c)(3), such as a donor-advised fund (DAF), can streamline the process and minimize legal and administrative burdens. By accepting crypto donations through an intermediary, your organization receives cash grants without the need for additional accounting or tax filings. The intermediary handles tasks like issuing tax receipts, converting crypto to cash, and staying abreast of regulatory changes.

Engage a Crypto Donation Processor

Opting for a specialized payment processor enables your nonprofit to accept crypto donations directly into your own wallets while automating receipts and cash conversion. However, holding onto cryptocurrency as an investment may introduce risk and complexity.

Leverage Embeddable Checkout Experiences

Crypto exchanges offer embeddable checkout experiences for nonprofits, facilitating seamless donation processes with automatic cash conversion. While cost-effective, these solutions may require additional efforts from your organization in terms of donor support and data collection.

Manage Your Own Crypto Wallets

For organizations with technical expertise, managing crypto wallets internally is an option. However, this approach demands careful consideration of wallet security and transaction tracking, as well as the implementation of robust policies for donor information collection.

Each option offers its own benefits and considerations, so it's essential to assess your organization's capabilities and resources before making a decision.

Albert Einstein College of Medicine

Albert Einstein College of Medicine, with over 60 years of dedication, is a leading research-intensive medical school. Our diverse faculty and staff continually set the standard for excellence in medical and graduate education, patient-centered clinical care, and groundbreaking scientific research, enriching human health globally.

Amazon Watch

For more than 25 years, Amazon Watch has been at the forefront of protecting the Amazon rainforest and defending the rights, lives, and territories of Indigenous peoples who call it home.

American Cancer Society, Inc

The American Cancer Society is committed to supporting those facing cancer by providing vital resources for research, patient services, early detection, treatment, and education. Join us in the fight against cancer at cancer.org.

American National Red Cross

Every 8 minutes, the American Red Cross responds to emergencies, providing essential support and relief to those in need. Join us in our mission to make a difference by making a donation today.

Code.org

Code.org is a nonprofit dedicated to ensuring every student has the opportunity to learn computer science as part of their core K-12 education, empowering them with crucial skills for the future.

Crisis

Crisis works directly with thousands of homeless individuals every year, providing essential support and resources to help them rebuild their lives and transition out of homelessness for good.

Dayton Art Institute

The Dayton Art Institute enriches the community by offering meaningful experiences with art that are accessible to all, fostering creativity, inspiration, and cultural appreciation.

Electronic Frontier Foundation

Support the Electronic Frontier Foundation in defending civil liberties and human rights online. Your donation helps EFF protect privacy, free expression, and digital creativity in an increasingly digital world.

Foregen

Foregen is pioneering regenerative medicine to restore the foreskin for circumcised men, offering hope and potential solutions through innovative research and technology.

ForKids, Inc.

ForKids serves families and children experiencing homelessness across Greater Hampton Roads, providing essential services, shelter, and support to help them secure housing and build a brighter future.

Liberty Counsel

Liberty Counsel is a Christian ministry dedicated to proclaiming the good news of forgiveness and eternal life through Jesus Christ, advocating for faith-based principles, and defending religious freedoms.

Mozilla Foundation

Mozilla Foundation is a global nonprofit dedicated to ensuring the Internet remains a global public resource, open and accessible to all, fostering innovation, collaboration, and digital inclusion.

Ocean Research & Conservation Association

ORCA is committed to protecting and restoring aquatic ecosystems and the species they sustain through innovative technologies, science-based conservation efforts, and community education and outreach.

Project Veritas

Project Veritas is dedicated to investigative journalism, exposing corruption, fraud, and misconduct in both public and private institutions to promote transparency and accountability in society.

Sea-Watch e.V.

Sea-Watch e.V. conducts civil search and rescue operations in the Central Mediterranean, providing emergency relief and advocating for legal escape routes for those in need.

The Metropolitan Museum of Art

The Metropolitan Museum of Art offers over 5,000 years of art from around the world for everyone to experience and enjoy, both in person at The Met Fifth Avenue and The Met Cloisters, and online.

Thorn

Thorn is dedicated to ending child sex trafficking and exploitation, working tirelessly to ensure every child can grow up safe and free from harm.

US FUND FOR UNICEF

Support UNICEF's humanitarian aid efforts for children in crisis around the world. Your donation can make a difference in keeping children safe and ensuring they have access to essential resources and support.

Wounded Warrior Project, Inc.

Wounded Warrior Project is committed to supporting veterans and active-duty service members, providing programs and services to empower them and enhance their quality of life. Join us in honoring and serving those who have sacrificed for our country.

To wrap it up, diving into crypto donations brings a wealth of possibilities for nonprofits. Whether they opt for intermediaries or handle donations directly, it's all about simplifying processes and broadening support. Each route offers perks, from cutting down on paperwork to exploring investment potentials. And teaming up with trustworthy charities covering diverse causes ensures crypto donations truly make a difference, be it in medical breakthroughs, environmental conservation, or aiding those in need. With clear plans and thoughtful strategies, nonprofits can ride the wave of crypto donations to create meaningful change across the globe.‍

How do I set up a bitcoin donation?

Scenario 1: For full control (but manual operations), set up a bitcoin donation by creating your own wallet, generating a donation address, and sharing it online.

Scenario 2: Opt for a crypto gateway payment button for flexibility and security. It ensures easy management of transactions and compliance with regulations, safeguarding against funds from criminal origins.

Can I set up a crypto donation with Calypso Pay?

Yes, Calypso Pay offers options like Payment Widget or Payment link for crypto donations, ensuring compliance with AML and regulations.

How do non-profits donate Bitcoins?

Non-profits receive bitcoin donations by creating a wallet and sharing the donation address with supporters.

Where do I send unwanted crypto?

Unwanted crypto donations can be sent to designated addresses provided by charities or exchanged for fiat currency.

Why do people donate in crypto?

People donate in crypto for its security, transparency, and potential investment value, aligning with their digital lifestyles and beliefs in decentralized finance.