Donate Cryptocurrency
Support children's futures with Bitcoin, Ethereum, and other cryptocurrencies. Maximize your tax benefits while making a lasting impact.
Why Donate Cryptocurrency?
Cryptocurrency donations offer unique advantages for both you and LissLovesYou, helping us do more for children in need.
Avoid Capital Gains Tax
When you donate appreciated cryptocurrency held for more than one year, you avoid paying capital gains tax entirely.
Deduct Full Market Value
Claim a tax deduction for the full fair market value of your cryptocurrency at the time of donation.
Greater Impact
More of your donation reaches the children we serve with lower processing fees and no capital gains tax reducing your gift.
Example: Maximize Your Impact
You purchased Bitcoin for $10,000, and it's now worth $50,000:
Option A: Sell, then donate cash
Capital gains tax (20%): -$8,000
Net donation: $42,000
Tax deduction: $42,000
Option B: Donate crypto directly
Capital gains tax: $0
Net donation: $50,000
Tax deduction: $50,000
By donating crypto directly: $8,000 more to children + $8,000 larger tax deduction!
How to Donate
Tax Information for Donors
How the IRS Treats Cryptocurrency Donations
The IRS treats cryptocurrency as property, not currency (IRS Notice 2014-21). This means the same favorable tax rules that apply to donating stocks or real estate also apply to cryptocurrency donations.
Holding Period Matters:
Held MORE than one year: Deduct full fair market value (most tax-efficient)
Held one year or LESS: Deduction limited to your original cost
Deduction Limitations
Your deduction may be limited based on your Adjusted Gross Income (AGI):
- Long-term crypto (held >1 year): Limited to 30% of AGI
- Short-term crypto (held ≤1 year): Limited to 50% of AGI
Good news: Excess deductions can be carried forward for up to 5 years!
What You'll Receive from LissLovesYou
We'll email you an official donation receipt within 2-3 business days containing:
- LissLovesYou Inc. name, address, and EIN
- Date of contribution (blockchain confirmation time)
- Description of property donated (cryptocurrency type and amount)
- Fair market value at time of receipt (USD value)
- Statement that no goods or services were provided in exchange
Important for Large Donations:
For cryptocurrency donations over $5,000, you must obtain a qualified appraisal and file Form 8283 with your tax return. We'll provide a signed acknowledgment for Part IV of the form.
How We Determine Fair Market Value
LissLovesYou determines the fair market value of cryptocurrency donations using:
- Timestamp: The blockchain confirmation time when we receive the cryptocurrency
- Exchange Rate: Coinbase's reported price (which averages major exchanges)
- Documentation: We record the exact timestamp and exchange rate for IRS compliance
This methodology is accepted by the IRS as a "good faith" valuation using reputable exchange rates.
Important Notes
Double-Check Wallet Addresses
Cryptocurrency transactions cannot be reversed. Always verify the wallet address before sending your donation.
Network Fees
You are responsible for blockchain transaction fees (gas fees). These fees vary based on network congestion.
Minimum Donation
Due to network fees, we recommend minimum donations of $50 USD equivalent to ensure your gift makes the greatest impact.
Get Your Receipt
Please email us at President@LissLovesYou.org with your transaction ID and contact information to ensure we can send your tax receipt.
Frequently Asked Questions
How do I receive my tax receipt?
We'll email you a tax receipt within 2-3 business days. Please email us at President@LissLovesYou.org with your transaction ID and contact information to ensure we can send your receipt.
What value is used for tax purposes?
The fair market value at the time we receive the cryptocurrency in our wallet is used for tax deduction purposes. We use Coinbase's exchange rates as our pricing reference.
Do I have to pay capital gains tax?
No! When you donate appreciated cryptocurrency held for more than one year directly to a 501(c)(3) nonprofit like LissLovesYou, you avoid capital gains tax entirely and can deduct the full fair market value.
Is my donation secure?
Yes. We use industry-standard wallet security including multi-signature authentication and cold storage for large amounts. All transactions are recorded on the blockchain for complete transparency.
What if I send the wrong amount or to the wrong address?
Cryptocurrency transactions cannot be reversed. Please double-check all addresses before sending. If you believe there's been an error, contact us immediately at President@LissLovesYou.org.
Can I donate anonymously?
While blockchain transactions are public, you can remain anonymous to us. However, if you want a tax receipt for your donation, you'll need to provide your contact information.
Should I consult a tax advisor?
Yes! This page provides general information only. We strongly recommend consulting with your own tax advisor or CPA regarding your specific tax situation, especially for donations over $5,000.
Your Crypto Donation is Tax-Deductible
LissLovesYou Inc. is a registered 501(c)(3) nonprofit organization. Cryptocurrency donations are tax-deductible at their fair market value at the time of donation, subject to IRS limitations.
Need Help?
Have questions about donating cryptocurrency? We're here to help.