{"id":6873,"date":"2023-03-09T13:30:22","date_gmt":"2023-03-09T13:30:22","guid":{"rendered":"https:\/\/www.irstaxapp.com\/?p=6873"},"modified":"2023-03-09T13:30:39","modified_gmt":"2023-03-09T13:30:39","slug":"are-cryptocurrency-donations-tax-deductible","status":"publish","type":"post","link":"https:\/\/www.irstaxapp.com\/are-cryptocurrency-donations-tax-deductible\/","title":{"rendered":"Are Cryptocurrency Donations Tax Deductible?"},"content":{"rendered":"\n<figure class=\"wp-block-image size-large is-resized\"><picture><source srcset=\"https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2023\/03\/crypto-donations-tax-deductible-1024x576.webp 1024w,https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2023\/03\/crypto-donations-tax-deductible-300x169.webp 300w,https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2023\/03\/crypto-donations-tax-deductible-768x432.webp 768w,https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2023\/03\/crypto-donations-tax-deductible-1536x864.webp 1536w,https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2023\/03\/crypto-donations-tax-deductible-150x84.webp 150w,https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2023\/03\/crypto-donations-tax-deductible-750x422.webp 750w,https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2023\/03\/crypto-donations-tax-deductible-1140x641.webp 1140w,https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2023\/03\/crypto-donations-tax-deductible.webp 1920w\" sizes=\"(max-width: 1121px) 100vw, 1121px\" type=\"image\/webp\"><img src=\"https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2023\/03\/crypto-donations-tax-deductible-1024x576.png\" height=\"631\" width=\"1121\" srcset=\"https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2023\/03\/crypto-donations-tax-deductible-1024x576.png 1024w, https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2023\/03\/crypto-donations-tax-deductible-300x169.png 300w, https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2023\/03\/crypto-donations-tax-deductible-768x432.png 768w, https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2023\/03\/crypto-donations-tax-deductible-1536x864.png 1536w, https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2023\/03\/crypto-donations-tax-deductible-150x84.png 150w, https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2023\/03\/crypto-donations-tax-deductible-750x422.png 750w, https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2023\/03\/crypto-donations-tax-deductible-1140x641.png 1140w, https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2023\/03\/crypto-donations-tax-deductible.png 1920w\" sizes=\"(max-width: 1121px) 100vw, 1121px\" class=\"wp-image-6880 sp-no-webp\" alt=\"cryptocurrency donations\" decoding=\"async\" loading=\"lazy\"  > <\/picture><\/figure>\n\n\n\n<p>Several charity organizations accept\u00a0<strong>cryptocurrency donations<\/strong>, like donations in cash and money or kinds. Therefore the question &#8220;<em>are crypto donations tax deductible ?<\/em>\u00a0&#8221; is quite common among crypto investors. Charitable donations have long been a popular way for individuals to support their favorite causes and organizations while receiving a tax benefit. In this post, we will look closer at the conditions, amount of deduction allowed, reporting requirements, and online tools provided by the IRS for individuals who make charitable donations of money or in kind, including cryptocurrencies.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_62 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-66299d8d955a7\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-66299d8d955a7\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.irstaxapp.com\/are-cryptocurrency-donations-tax-deductible\/#Video_on_Rules_for_Tax_deductions_on_Cryptocurrency_Donations\" title=\"Video on Rules for Tax deductions on Cryptocurrency Donations\">Video on Rules for Tax deductions on Cryptocurrency Donations<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.irstaxapp.com\/are-cryptocurrency-donations-tax-deductible\/#Are_there_special_rules_for_cryptocurrency_donations\" title=\"Are there special rules for cryptocurrency donations?\">Are there special rules for cryptocurrency donations?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.irstaxapp.com\/are-cryptocurrency-donations-tax-deductible\/#Organizations_that_accept_cryptocurrency_donations\" title=\"Organizations that accept cryptocurrency donations\u00a0\">Organizations that accept cryptocurrency donations\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.irstaxapp.com\/are-cryptocurrency-donations-tax-deductible\/#Who_is_a_qualified_organization_for_tax_deduction_purposes\" title=\"Who is a qualified organization for tax deduction purposes?\">Who is a qualified organization for tax deduction purposes?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.irstaxapp.com\/are-cryptocurrency-donations-tax-deductible\/#Online_Tools_Provided_by_the_IRS\" title=\"Online Tools Provided by the IRS\">Online Tools Provided by the IRS<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.irstaxapp.com\/are-cryptocurrency-donations-tax-deductible\/#Cryptocurrency_donation_platform\" title=\"Cryptocurrency donation platform\">Cryptocurrency donation platform<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.irstaxapp.com\/are-cryptocurrency-donations-tax-deductible\/#Conditions_for_Deducting_Charitable_Contributions\" title=\"Conditions for Deducting Charitable Contributions\">Conditions for Deducting Charitable Contributions<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.irstaxapp.com\/are-cryptocurrency-donations-tax-deductible\/#Amount_of_Deduction_Allowed\" title=\"Amount of Deduction Allowed\">Amount of Deduction Allowed<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.irstaxapp.com\/are-cryptocurrency-donations-tax-deductible\/#Reporting_and_Forms_Requirements\" title=\"Reporting and Forms Requirements\">Reporting and Forms Requirements<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Video_on_Rules_for_Tax_deductions_on_Cryptocurrency_Donations\"><\/span>Video on Rules for Tax deductions on Cryptocurrency Donations<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<div class=\"jeg_video_container jeg_video_content\"><iframe loading=\"lazy\" title=\"Are cryptocurrency donations tax deductible?\" width=\"500\" height=\"281\" src=\"https:\/\/www.youtube.com\/embed\/025q17EMC64?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" allowfullscreen><\/iframe><\/div>\n<\/div><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Are_there_special_rules_for_cryptocurrency_donations\"><\/span>Are there special rules for cryptocurrency donations?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>In general, donations made in cryptocurrency are treated similarly to donations made in cash or other property.&nbsp;<\/p>\n\n\n\n<p>IRS treats cryptocurrency as &#8220;property&#8221; for tax purposes. Therefore, cryptocurrency donations follow the rules of donation of property like houses or shares of companies. The fair market value (FMV) of the donated cryptocurrency on the donation date determines the deduction amount. In other words, if you donate cryptocurrency to a qualified charitable organization, you can claim a tax deduction for the FMV of the donated cryptocurrency on your tax return.<\/p>\n\n\n\n<p>The IRS has also issued a relevant Revenue Procedure, specifically Revenue Procedure 2019-24, which guides determining the FMV of cryptocurrency donations. According to this procedure, the FMV of the cryptocurrency is determined based on the published exchange rate of the cryptocurrency on a specific date and time. The procedure also guides taxpayers who receive cryptocurrency as a donation.There are specialized <a href=\"https:\/\/www.irstaxapp.com\/2023-list-of-10-best-crypto-tax-software-in-usa\/\">cryptocurrency software <\/a>that may help you in this regard .<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Organizations_that_accept_cryptocurrency_donations\"><\/span>Organizations that accept cryptocurrency donations\u00a0<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<div class=\"jeg_video_container jeg_video_content\"><iframe loading=\"lazy\" title=\"Top 10 Organization that Accepts Crypto Donations\" width=\"500\" height=\"281\" src=\"https:\/\/www.youtube.com\/embed\/X95ytoNT34Q?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" allowfullscreen><\/iframe><\/div>\n<\/div><\/figure>\n\n\n\n<p>Now that we know the tax implications of cryptocurrency donations let&#8217;s take a look at some organizations that accept cryptocurrency donations in the US:<\/p>\n\n\n\n<ol><li><a href=\"https:\/\/thewaterproject.org\/donate-crypto\" target=\"_blank\" rel=\"noreferrer noopener\">The Water Project\u00a0<\/a>&#8211; This organization provides clean water to communities in sub-Saharan Africa.<\/li><li><a href=\"https:\/\/www.eff.org\/pages\/other-ways-give-and-donor-support#crypto\" target=\"_blank\" rel=\"noreferrer noopener\">Electronic Frontier Foundation (EFF)<\/a>\u00a0&#8211; The EFF defends civil liberties in the digital world.<\/li><li>Code.org &#8211; This nonprofit organization aims to make computer science education accessible to all students.<\/li><li>Heifer International &#8211; Heifer International provides livestock and agricultural training to families in need worldwide.<\/li><li>The Tor Project &#8211; The Tor Project provides anonymous online communication tools.<\/li><li>American Cancer Society &#8211; The American Cancer Society is a nationwide, community-based voluntary health organization dedicated to eliminating cancer.<\/li><li>The Wikimedia Foundation &#8211; The Wikimedia Foundation operates Wikipedia and its sister projects.<\/li><li>The Internet Archive &#8211; The Internet Archive is a non-profit digital library.<\/li><li>GiveCrypto &#8211; GiveCrypto is a nonprofit organization that distributes cryptocurrency to needy people.<\/li><li>Save the Children &#8211; Save the Children is an international organization that works to improve the lives of children around the world.<\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Who_is_a_qualified_organization_for_tax_deduction_purposes\"><\/span>Who is a qualified organization for tax deduction purposes?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>If you want to claim a tax deduction for cryptocurrency donations, the IRS must recognize the organization as a qualified charitable organization. Donations made to political campaigns or candidates are not tax-deductible.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Online_Tools_Provided_by_the_IRS\"><\/span>Online Tools Provided by the IRS<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The IRS provides several online tools to help individuals who make charitable donations. You can visit The Exempt Organizations Select Check tool allows you to search for qualified charitable organizations, and also IRS Tax Exempt Organization Search tool allows you to search for information on tax-exempt organizations.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Cryptocurrency_donation_platform\"><\/span>Cryptocurrency donation platform<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The following table compares three popular crypto fundraising solutions for nonprofits: TheGiving Block, Engiven, FundraiseUp and Classy. See the charts below prepared by <strong>The Giving Block <\/strong>for a breakdown of featured benefits and offerings from these different crypto fundraising solutions.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-black-color has-text-color has-background\" style=\"background-color:#dbfaee\"><tbody><tr><th><strong>Feature<\/strong><\/th><th>T<strong>he Giving Block<\/strong><\/th><th><strong>Engiven<\/strong><\/th><th><strong>FundraiseUp<\/strong><\/th><th><strong>Classy<\/strong><\/th><\/tr><tr><td>Crypto Donations Accepted<\/td><td>Yes<\/td><td>Yes<\/td><td>Yes<\/td><td>Yes<\/td><\/tr><tr><td>Number of Cryptocurrencies Accepted<\/td><td>200+<\/td><td>~100<\/td><td>~100<\/td><td>10<\/td><\/tr><tr><td>Stock Donations<\/td><td>Yes<\/td><td>No<\/td><td>Yes<\/td><td>No<\/td><\/tr><tr><td>Card Donations<\/td><td>Yes<\/td><td>No<\/td><td>Yes<\/td><td>Yes<\/td><\/tr><tr><td>Simple Crypto Wallet Setup<\/td><td>Yes<\/td><td>Yes<\/td><td>No<\/td><td>No<\/td><\/tr><tr><td>Automatic Cash Conversion<\/td><td>Yes<\/td><td>Yes<\/td><td>Coinbase only, not for Gemini<\/td><td>Yes<\/td><\/tr><tr><td>Form 8282\/8283<\/td><td>Yes<\/td><td>Yes<\/td><td>No<\/td><td>No<\/td><\/tr><tr><td>Crowdfunding Platform<\/td><td>Yes<\/td><td>No<\/td><td>No<\/td><td>No<\/td><\/tr><tr><td>Impact Index Funds<\/td><td>Yes<\/td><td>No<\/td><td>No<\/td><td>No<\/td><\/tr><tr><td>Peer-to-Peer Fundraisers<\/td><td>Yes<\/td><td>No<\/td><td>No<\/td><td>Yes<\/td><\/tr><tr><td>Private Client Donation Services<\/td><td>Yes<\/td><td>No<\/td><td>No<\/td><td>No<\/td><\/tr><tr><td>Automatic Tax Receipts<\/td><td>Yes<\/td><td>Yes<\/td><td>Yes<\/td><td>Yes<\/td><\/tr><tr><td>Dedicated Crypto Client Success Team<\/td><td>Yes<\/td><td>No<\/td><td>No<\/td><td>No<\/td><\/tr><\/tbody><\/table><figcaption>Chart by The Giving Block<\/figcaption><\/figure>\n\n\n\n<p class=\"has-luminous-vivid-orange-color has-text-color\"><em>* <strong>Disclaimer :<\/strong> irstaxapp.cm has no direct or indirect connection or affiliate connection with any of the three platforms mentioned in the aforesaid table.<\/em><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conditions_for_Deducting_Charitable_Contributions\"><\/span>Conditions for Deducting Charitable Contributions<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>You can claim a tax deduction for charitable contribution if the following conditions are satisfied :<\/p>\n\n\n\n<ol><li>Donation is made to a&nbsp;<strong>qualified charitable organization, meaning t<\/strong>he IRS has already recognized the organization as tax-exempt under Section 501(c)(3) of the Internal Revenue Code.<\/li><li>You must not claim the standard deduction and itemize your deductions on Schedule A of your tax return.<\/li><li>You must keep accurate records of your charitable donations, including the organization&#8217;s name and address, the donation&#8217;s date and amount, and a description of any non-cash contributions.<\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Amount_of_Deduction_Allowed\"><\/span>Amount of Deduction Allowed<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The amount of your charitable contribution deduction will depend on the type of donation you make and your income level. In general, the maximum deduction you can claim <strong>is 60% of your adjusted gross income<\/strong> (AGI) for cash contributions and 30% of your AGI for donations of appreciated property. You can carry the excess to future tax years if your contributions exceed these limits.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Reporting_and_Forms_Requirements\"><\/span>Reporting and Forms Requirements<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>IRS rule says that to claim a charitable contribution deduction on your tax return, you will need to include the following information on your tax forms:<\/p>\n\n\n\n<ol><li>For cash contributions under $250, you must retain a bank record or written communication from the organization showing the organization&#8217;s name, the date of the contribution, and the contribution amount.<\/li><li>For cash contributions of $250 or more, you must obtain a written acknowledgment from the organization. This acknowledgment must include the name of the organization, the date of the contribution, and the amount of the gift.<\/li><li>For non-cash contributions like cryptocurrency donations, you must file <strong>Form 8283<\/strong> with your tax return if the total value of your donations exceeds $500. You must also obtain a qualified appraisal for any donated property worth $5,000.<\/li><\/ol>\n\n\n\n<p><\/p>\n\n\n\n<p>crypto donations<\/p>\n\n\n\n<p>crypto donation tax<\/p>\n\n\n\n<p><\/p>\n\n\n\n<p>are crypto donations tax deductible<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Several charity organizations accept\u00a0cryptocurrency donations, like donations in cash and money or kinds. Therefore the question &#8220;are crypto donations tax deductible ?\u00a0&#8221; is quite common among crypto investors. Charitable donations have long been a popular way for individuals to support their favorite causes and organizations while receiving a tax benefit. In this post, we will [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":6883,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[54],"tags":[],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/www.irstaxapp.com\/wp-json\/wp\/v2\/posts\/6873"}],"collection":[{"href":"https:\/\/www.irstaxapp.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.irstaxapp.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.irstaxapp.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.irstaxapp.com\/wp-json\/wp\/v2\/comments?post=6873"}],"version-history":[{"count":3,"href":"https:\/\/www.irstaxapp.com\/wp-json\/wp\/v2\/posts\/6873\/revisions"}],"predecessor-version":[{"id":6884,"href":"https:\/\/www.irstaxapp.com\/wp-json\/wp\/v2\/posts\/6873\/revisions\/6884"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.irstaxapp.com\/wp-json\/wp\/v2\/media\/6883"}],"wp:attachment":[{"href":"https:\/\/www.irstaxapp.com\/wp-json\/wp\/v2\/media?parent=6873"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.irstaxapp.com\/wp-json\/wp\/v2\/categories?post=6873"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.irstaxapp.com\/wp-json\/wp\/v2\/tags?post=6873"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}