Do you own BTC, ETH, USDC, or any other cryptocurrency and wish to donate it to a good cause?
Whether you were inspired by the Pineapple Fund’s 5,500 BTC donation ($50-86M in value at the time of donation), Vitalik Buterin’s $1B SHIB donation to a COVID-19 relief fund, or just want to make a personal commitment to give back some of your gains, The Giving Block wants to help you make the most of your crypto investment.
This guide will show you how to make a charitable donation using cryptocurrency, maximizing its impact and ensuring tax efficiency for your gift.
Do Charitable Organizations Accept Crypto? (Yes, They Do!)
With 1.7 million nonprofits registered in the US alone, the fundraising landscape is highly competitive. Accepting crypto donations is a way for nonprofit organizations to reach new donors like you, tap into new revenue streams, grow their “major giving” programs, and prepare for a future of philanthropy where crypto giving is the norm.
A small but increasing number of charities have experimented with holding their crypto donations as an investment that can unlock greater impact in the future.
The fundraising potential in crypto is like nothing we’ve ever seen before. Crypto is the key that unlocks the cages. With generous support from our donors, we’re able to get orphaned and displaced orangutans out of cages and provide them with forested sanctuary care.
Charitable organizations have embraced the crypto community in exciting new ways, through avenues like social engagement, curating YouTube playlists on charitable NFT projects, launching crypto endowment funds, and publishing crypto donor impact reports.
Why Donate Cryptocurrency? (Top 5 Reasons)
Any person, DAO, company or project with some crypto can donate it. There are numerous reasons to donate crypto, but these are arguably the most important ones:
1. Tax Efficiency
Investors often opt to keep their crypto for long-term gains, but when it’s time to cash in, selling it incurs capital gains taxes. However, a savvy strategy for crypto users is to donate their crypto since donated crypto isn’t subject to capital gains tax.
>> Give Crypto for Lower Taxes. Explore the tax-efficient benefits of crypto donations.
2. Making a Difference
Donating cryptocurrency goes beyond finances—it’s a meaningful humanitarian act. By giving in crypto, you contribute to a cause that’s close to your heart, whether that’s LGBTQ+ rights, ocean conservation, animal rescue, disaster relief or another important issue.
3. Spreading Crypto Adoption
Years before many major banks and businesses, many nonprofits were comfortable with cryptocurrency. (For example, Save the Children took Bitcoin donations as far back as 2013.) Today nearly half of Forbes’ Top 100 Charities accept crypto, and each time you donate you are positively reinforcing the nonprofit sector’s friendliness to crypto users.
4. Joining a Growing Community
Crypto donors are a diverse bunch that includes NFT creators, DAO governance committees, industry leaders, blockchain companies, and everyday investors. Your donation makes you an early adopter of crypto philanthropy along with Jack Butcher, Ray Youssef, Inna Modja and many others.
5. Security and Privacy
By giving to a nonprofit using The Giving Block’s crypto fundraising solution, you can choose to provide your personal information or donate anonymously. If choosing the latter, you can still receive a receipt for your donations, but will not be enrolled in any nonprofit marketing or mailing lists.
What Are People Saying About Crypto Philanthropy?
Leading figures in the crypto community and nonprofit sector are embracing crypto philanthropy. Notable crypto philanthropists include Ripple co-founder Chris Larsen, Coinbase CEO Brian Armstrong, and NFT creator Ashley DCan. Meanwhile, nonprofit visionaries like Ettore Rossetti, Kelsey Driscoll and Sarah Kershaw are trailblazing the path for fundraisers to embrace crypto giving.
Below are a few of our favorite quotes on the impact and potential of crypto philanthropy:
- “Accepting cryptocurrency gifts is instrumental in funding our efforts to introduce new technology to the child wellbeing space, but it’s only the beginning,” according to Ryan Park of the Texas-based charity Upbring.
- NFT creator Jack Butcher says that “NFTs push the relationship between art and philanthropy into an entirely new paradigm.”
- “Bitcoin is a catalyst that allows us to accomplish our work effectively and efficiently,” says Yusuf Nessary, Director of Philanthropy at the Built With Bitcoin Foundation
How To Donate Cryptocurrency (Step-by-Step Guide)
Donating cryptocurrency to charities is a straightforward, speedy, and secure process. Whether you’re contributing on December 31 to meet tax deadlines or making a donation on any other day, our crypto donation form consistently ensures a seamless experience.
Step 1: Pick a cause to support
Choose from thousands of organizations or one of our signature Impact Index Funds, which allow you to support multiple charities with a single donation.
Step 2: Choose the asset and amount
Our donation form supports dozens of leading cryptocurrencies, from top assets like Bitcoin, Ethereum and Solana, stablecoins like USDC and DAI, and even memecoins like Dogecoin and Shiba Inu.
We also support stock donations, grants from your Donor-Advised Fund, and more ways to give.
Step 3: Enter your personal information (optional)
If you wish to, you can input details like your name and address. Even if you choose to donate anonymously, you can still provide an email address where you can receive a receipt for tax purposes.
Step 4: Connect your wallet and donate
The form will generate a dynamic wallet address directly linked to the charity’s wallet. This approach safeguards your privacy. Importantly, you can reuse these addresses at your discretion, such as in a smart contract if you wish to automate your charitable giving.
When the QR code appears, simply connect your wallet to complete your donation.
Step 5: Save your receipt for tax filing purposes
After donating, the charitable organization will be notified of your cryptocurrency donation. Check your email for a donation acknowledgement letter, which you can file away for tax filing season.
If you can’t see it, please double check your spam or junk folder. Contact The Giving Block if you need it to be re-sent to you.
Give Now: Make a Difference With Crypto
Fuel meaningful change with cryptocurrency donations! Thousands of charities are collaborating with The Giving Block, ready to receive your contributions in Bitcoin, Ethereum, and other cryptocurrencies.
Explore our diverse range of crypto-ready nonprofits, including renowned organizations like United Way Worldwide, American Cancer Society, and Code to Inspire. Your donation has the power to ignite impactful transformations in the world. Seize the opportunity to make a difference today!
Note: This article was originally published in 2021. It has been updated, most recently in December 2023.
