Cryptocurrencies, or crypto, are digital forms of money that can be used to buy goods and services, or held onto as a long-term investment (like a stock). They are typically intended to eliminate the need for banks and middlemen because they’re “decentralized.” This means that no single entity controls the supply of the cryptocurrency. Instead, decentralized cryptocurrencies commonly use a distributed ledger (a “blockchain”) managed by a peer-to-peer network that works together to record and validate transactions. You can learn more about crypto and what it means for philanthropy here.

Absolutely. You just need to complete the steps above for each coin, one at a time.

Cryptocurrency assets donated through the Crypto for Charity platform are initially received by an intermediary nonprofit organization, FreeWill Impact Fund, which maintains a cryptocurrency exchange account and wallet. FreeWill Impact Fund provides donors with a tax receipt for their donation, liquidates the donated cryptocurrency, and passes the net cash proceeds on to the Houston Food Bank.

Donating crypto directly to charity can save you money on two types of taxes:

1. Avoid paying any capital gains tax on your crypto gains.
2. Receive a federal income tax deduction for the full value of your crypto (state and local income tax deductions may also be available).

An alternative is to sell your crypto and donate the cash proceeds, but you would first owe capital gains tax on the appreciation, resulting in higher taxes for you and less dollars going to furthering the mission of the charity.

Please seek the advice of your financial or legal advisor.

See Crypto for Charity’s guide on Tax Deductions for Crypto Donations.

Please seek the advice of your financial or legal advisor.