Reporting Requirements for Crypto Donations
So, your nonprofit or charitable organization received a crypto donation this year… yay! Congratulations on adapting to this new technology, and leveraging it for world-changing good! At Engiven, we believe this is just the beginning of a new and exciting way to fund charitable causes.
Now the reality check: There are tax implications to receiving crypto donations. This page is designed to be your one-stop-shop in navigating proper reporting of your gifts.
The IRS classifies crypto as property, which means it is treated like a non-cash asset for donation purposes.
First, identify what category your donation(s) fall(s) into, and what the requirements are for that donation category.
Category 1: Donations valued at $0-$500
Requirements of donor: N/A
Requirements of donee (nonprofit): Produce a standard, noncash donation receipt.
Category 2: Donations valued at $500.01-$5,000
Requirements of donor: File Form 8283 (Noncash Charitable Contributions).
Requirements of donee (nonprofit): Complete Form 8282 & provide a copy of Form 8282 to the donor (as long as the crypto donation was sold within three years of when it was received).
Category 3: Donations valued at $5,000.01-$500,000
Requirements of donor: File Form 8283 & receive a qualified appraisal (prepared by a qualified appraiser) & have appraiser sign Form 8283.
Requirements of donee (nonprofit: Sign Form 8283 & file Form 8282 and provide a copy to the donor (as long as the crypto donation was sold within three years of when it was received).
Category 4: Donations valued at $500,000.01 or more
Requirements of donor: File Form 8283; receive a qualified appraisal (prepared by a qualified appraiser); have appraiser sign Form 8283, and submit qualified appraisal to the IRS.
Requirements of donee (nonprofit): Sign Form 8283 & complete Form 8282 and provide a copy to the donor (as long as the crypto donation was sold within three years of when it was received)
How to fill out form 8282 (for donees)
You can always view and download the latest version of this form on the IRS's official website.
- Line 1a: Enter the name of the original donor.
- Line 1b: The donor’s identifying number may be either an employer identification number or a social security number, and should be the same number provided on page 2 of Form 8283.
- Line 1c and 1d: Enter the last known address of the original donor.
- Lines 2a–2d: Complete these lines if the organization gave the property to another charitable organization successor donee (defined earlier). If the organization is an original donee, skip Part II and go to Part III.
- Complete Part II only if the organization is a successor donee. If the organization is the original donee, do not complete any lines in Part II; go directly to Part III. If the organization is the second donee, complete lines 3a through 3d. If the organization is the third or later donee, complete lines 3a through 4d. On lines 4a through 4d, give information on the preceding donee.
- Column 1: For charitable deduction property that the organization sold, exchanged, or otherwise disposed of within 3 years of the original contribution, describe each item in detail. Additionally, for the period of time the organization owned the property, explain how it was used. If additional space is needed, attach a statement.
- Column 3: Check “Yes” if the organization’s use of the charitable deduction property was related to its exempt purpose or function. Check “No” if the organization sold, exchanged, or otherwise disposed of the property without using it (this will be the case if a crypto donation was received and immediately liquidated).
- Certification: Sign and date the certification if any property described in Part III is tangible personal property and you answered “Yes” to Part III, question 3, or you answered “No” to Part III, question 3 and the intended use of the property became impossible or infeasible to implement.
- Signature: Form 8282 is not valid unless it is signed by an officer of the organization. Be sure to include the title of the person signing the form and the date the form was signed.
To learn about how to fill out Form 8283 (for individuals), click HERE