The IRS classifies crypto as property, which means it's treated like a non-cash asset for donation purposes.
Reporting Requirements for Crypto & Other Non-Cash Donations
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.
Which Category Was Your Donation In?
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): N/A
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 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).
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; 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 8283 (for donors)
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 will provide the required appraisal for you and deliver it to the email address you provided. If you need a copy, you can contact us via email at email@example.com
If you didn't process your gift through Engiven, your appraisal must be prepared by a qualified appraiser.
Per the IRS, qualified appraisers either:
- Earned a recognized appraiser designation from a generally recognized professional appraiser organization for demonstrated competency in valuing the type of property being appraised (crypto), or
- Has met certain minimum education requirements and has 2 or more years of experience in valuing the type of property being appraised. To meet the minimum education requirements, the individual must have successfully completed professional or college-level coursework in valuing the type of property and the education must be from (1) A professional or college-level educational organization, (2) a generally recognized professional trade or appraiser organization that regularly offers educational programs, or (3) an employer is part of an employee apprenticeship or education program similar to professional or college-level courses.
- The individual regularly prepares appraisals for which he or she is paid.
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: