Donate Cryptocurrency

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.

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.

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

How We Determine Fair Market Value

LissLovesYou determines the fair market value of cryptocurrency donations using:

1. Timestamp: The blockchain confirmation time when we receive the cryptocurrency
2. Exchange Rate: Coinbase's reported price (which averages major exchanges)
3. 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

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.