Why Donate Crypto Directly? Taxes! Donating cryptocurrency directly to a 501c3 nonprofit is more tax efficient and can save you money.
Cryptocurrency investments—such as Bitcoin and Ethereum—investments can unlock additional funds for charity in two ways.
First, you potentially eliminate the capital gains tax you would incur if you sold the assets yourself and donated the proceeds, which may increase the amount available for charity by up to 20%.
Second, if you itemize deductions on your tax return instead of taking the standard deduction, you may claim a fair market value charitable deduction for the tax year in which the gift is made and may choose to pass on that savings in the form of more giving.