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Bitcoin donations

  • 1.  Bitcoin donations

    Posted 01-11-2022 05:32 PM
    What is the current understanding about accepting donations denominated in Bitcoin? I think this topic has been discussed previously to some extent. I'm skeptical of accepting donations unless we can, or the donor can, convert to USD. I view such donations akin to GIKs. Thanks for consideration. 

    Michael J. Behr, executive director, development operations
    Rush University Medical Center, Chicago.
    630.886.4491



  • 2.  RE: Bitcoin donations

    Posted 01-11-2022 05:56 PM
    They are property gifts by IRS definition.  They, and almost all other forms of cryptocurrency, are quite easy to convert to cash - although much like with appreciated stock, your donor will want you to do this.  Which is fine.

    Just have your CFO work out the details and select a vendor much like a stockbroker that will convert the received crypto to cash as soon as it hits your crypto wallet.

    John

    John H. Taylor
    Principal
    John H. Taylor Consulting, LLC
    2604 Sevier St.
    Durham, NC   27705
    919.816.5903 (cell/text)

    Serving the Advancement Community Since 1987






  • 3.  RE: Bitcoin donations

    Posted 01-11-2022 11:16 PM
    Hi Michael,

    Our school has accepted crypto donations in the past by using a third party (Silicon Valley Community Foundation in two instances, and Bitpay in another instance). The donor gives crypto to the third party, the third party converts it into US Dollars, and the third party sends us the money either by hard check or wire transfer.  We treat crypto donations like stock donations: we do not hold stock or crypto and we sell it right away. The process is very straightforward. I used Bitpay last fall and it was a good experience both on my side and the donor's side (plus it was a small fee and VERY fast -- much faster than a typical stock gift).

    Vidya

    --

    Vidya Kagan

    Menlo School

    Development Office

    50 Valparaiso Avenue

    Atherton, CA 94027

    Office: 650.330.2044
    Cell:  650.722.2124
    www.menloschool.org






  • 4.  RE: Bitcoin donations

    Posted 01-12-2022 08:38 AM
    We recommend BitPay for being fast, inexpensive and easy to use. 

    Note that the IRS's FAQ about crypto now says that the FMV of the crypto is the value at the time of the trade itself, not the high/low on the day of the transaction. This makes crypto donations even easier to process than stocks. 

    Isaac Shalev
    Data Strategy Expert
    (917) 859-0151
    isaac@sage70.com

    Autocorrect was used in composting this email, please excuse any typos






  • 5.  RE: Bitcoin donations

    Posted 01-12-2022 08:41 AM

    I am seeing mixed messages about crypto donations. I am seeing that it is very similar to stock gifts but I am also seeing reliable resources that indicate it is more like other personal property in that the donor may need to file an 8283 for taxes and we would need to file an 8282 if sold within three years. I haven't seen much helpful info on the irs.gov site but several other reliable resources seem to indicate it is more like non-security personal property.

     

    https://www.cof.org/content/gifts-cryptocurrency-and-charitable-acknowledgments-irs-faqs-provide-guidance

     

    https://www.aicpa.org/resources/article/bitcoin-basics-for-nfps-accepting-and-valuing-crypto-asset-gifts

     

    Has anyone seen anything official from the IRS that would relieve us of having to sign 8283 and file 8282s?

     

    Thanks.

     

     

    John Smilde

    D