How a nonprofit can accept crypto donations
A nonprofit can accept crypto donations through its own wallet or a donation processor, then record each gift's fair market value and send donor receipts.
Vahe HakobyanEditor-in-chief
Updated Oct 6, 20263 min readFact-checked
On this page
- Multi-signature wallets lower the risk of a stolen key.
- Crypto transfers are pseudonymous. Do not promise anonymity.
- Treat unsolicited tokens and messages as suspicious.
The choice between a processor and your own wallet decides who controls the keys. Secure key storage comes first.
What do you need before starting?
A processor gives you a receiving address and can convert gifts. Your own wallet gives you direct control of the keys.
How do you accept crypto donations?
Set up the receiving wallet before you share any address. Test it with a small gift, then publish the giving option.
- 1Set up a secure walletChoose a multi-signature wallet and create a receiving address. Keep the recovery phrase offline.
- 2Check the address and networkConfirm the address and network before you share them. A coin sent on the wrong network can be lost.
- 3Receive a test giftAsk a colleague to send a small amount and confirm it arrives before you publish the address.
- 4Publish and prepare receiptsAdd the address or a processor button to your website and forms. Record the gift date and donor details.
- 5Convert crypto to dollarsUse an exchange or the processor when your policy calls for it. Keep the trade confirmation.
What records and security after?
The IRS treats digital assets as property, so your records must support the value you report. Each gift needs a fair market value in US dollars on the date you receive it. Crypto transfers are pseudonymous, so do not promise anonymity, and treat a letter asking you to register crypto as a scam.
Frequently asked questions
Taking gifts for your own programs generally does not make you a money transmitter. State rules can apply if you convert for others.
Accept only assets and networks your wallet or processor supports. A coin sent on the wrong network can be lost.
Donors who itemize can generally deduct crypto gifts to a public charity. Crypto held more than one year is usually deducted at fair market value.
