Congratulations on making a charitable contribution by donating crypto! You're changing the world through your generosity, and you're using one of the safest technologies on the planet to do it. At Engiven, we believe this is just the beginning of a new and exciting way to fund charitable causes, and you're ahead of the adoption curve.
Now the reality check: There are tax implications to making crypto donations. This page is designed to be your one-stop-shop for 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––which you were likely keenly aware of when you decided to make your donation.
First, identify what category your donation(s) fall(s) into, and what the requirements are for that donation category.
Requirements of donor: N/A
Requirements of donee (nonprofit): Produce a standard, noncash donation receipt.
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).
Requirements of donor: File Form 8283 & receive a qualified appraisal (prepared by a qualified appraiser) & have the 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).
Requirements of donor: File Form 8283; Receive a qualified appraisal (prepared by a qualified appraiser); Have appraiser sign Form 8283; 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).
You can always view and download the latest version of this form on the IRS's official website. The following instructions were obtained from this site.
Form 8283 is filed by individuals, partnerships, and corporations. You must file one or more Forms 8283 if the amount of your deduction for each noncash contribution over $500. It has two sections: A and B. You must only fill out one section. Use Section A to report donations of property of $5,000 or less, and Section B to report donations of property of more than $5,000.
Below, we'll highlight some of the sections that might need a little bit of clarification.
Column C: Describe the crypto in as much detail as possible, including the platform where you purchased it.
Column D: Enter the date you donated the crypto. If you made contributions on various dates, enter each contribution and its date on a separate row.
Note: If your donation was valued at $500 or less, you do not have to complete columns E, F or G.
Column E: Enter the date you acquired the crypto. If you are donating a group of similar cryptocurrencies that you acquired on various dates (but have held all the items for at least 12 months), you can enter “various.”
Column F: State how and where you acquired the crypto (often "purchase"). Other examples: gift, inheritance, or exchange.
Column G: Do not complete this column for publicly traded securities held more than 12 months, unless you elect to limit your deduction cost basis.
Column H: Enter the fair market value (FMV) of the crypto on the date you donated it (this will be the price on the date you made the donation). You must attach a statement explaining the donation's FMV. FMV is the price a willing, knowledgeable buyer would pay a willing, knowledgeable seller when neither has to buy or sell. For crypto, this is
Column I: Enter the method(s) you used to determine the FMV. Examples of entries to make for cryptocurrencies include “Appraisal” or “Comparable sales”.
How to get a qualified appraisal of your donation
If you processed your donation through Engiven's platform, and the nonprofit you donated to is a premium client, we automatically generated an appraisal for you and delivered it to the email address you provided. If you need a copy, you can contact us via email at firstname.lastname@example.org
If you didn't process your gift through Engiven, your appraisal must be prepared by a qualified appraiser.
Per the IRS, qualified appraisers either:
In the appraisal, the appraiser makes a declaration explaining why he or she is qualified to make appraisals of crypto, specifying his or her education and experience in appraising crypto.
In addition, the appraiser must complete Part IV of Form 8283. The appraiser's taxpayer identification number (social security number or employer identification number) must be entered in Part IV of Section B.
If you didn't process your gift through Engiven, you can find qualified appraisers here: