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More About Crypto Giving
How to Donate Cryptocurrencies to FaithSearch International
Cryptocurrency donations to FaithSearch are fast, easy, and offer greater tax incentives than donations made with fiat currency or debit card payments. This is true regardless of your tax bracket because the IRS considers cryptocurrencies capital assets, similar to real estate.
Because of the growing popularity of Bitcoin, Ethereum, and other cryptos, many nonprofit organizations now accept these as gifts. Below are a selected list of examples:
- Samaritan’s Purse
- Compassion International
- The Salvation Army
- North Point Ministries
- Fellowship of Christian Athletes (FCA)
- Saddleback Church
So, let’s look at just how easy it can be to support the work of FaithSearch using crypto while giving your tax return a little reprieve.
Option One. Sell Your Crypto and Donate the Proceeds [NOT RECOMMENDED]
You may be tempted to sell the crypto and donate the funds. What many don’t realize, however, is that this option may have steep tax penalties for you.
According to the IRS, crypto is not currency–it’s property. And like other property, when you sell for a net capital gain, you may owe capital gains tax. Furthermore, you may incur income taxes as well. Therefore, it is more tax-efficient for you to donate your crypto rather than cash to FaithSearch.
Option Two. Donate Crypto Directly to FaithSearch
A direct crypto donation to FaithSearch features a host of benefits for you. First, the gift is tax-deductible, just like any other gift of property. Second, because you are not selling the property, you’ll pay neither capital gains tax nor income tax on the proceeds.
Instead of accepting cryptocurrency donations directly from donors, FaithSearch has chosen to partner with the Engiven Foundation, a secure and ECFA member crypto donation platform.
You can access the Engiven platform through a secure link by clicking the button “Donate Crypto to FaithSearch” below. The prompts will ask you to select the cryptocurrency you wish to donate and the amount. Then, you will receive a QR code and public address to use for sending your crypto donation. Once the donation is sent, Engiven will verify it and send you a donation receipt via email when it completes.
Finally, Engiven exchanges the crypto you donated for US dollars and forwards the funds to FaithSearch. Engiven will send you the tax paperwork you need to claim your deduction. It is really no more difficult than a cash or credit card donation. And just like cash, check, or credit card donations, you advance the kingdom of God through FaithSearch to the glory of God!
NOTE: To better understand the tax benefits of donating crypto, here are a list of informative articles by the Engiven Foundation, our fiscal crypto sponsor: Crypto Giving and Taxes.