Cryptocurrency has moved from niche investment to mainstream giving. The Giving Block reports that nonprofits received over $1 billion in cryptocurrency donations in 2024, reflecting rapid growth in crypto philanthropy. At the same time, the IRS treats digital assets as property, which means donating appreciated crypto can offer significant tax advantages compared with selling and giving cash.
If you want to donate crypto to charity and support college students facing food insecurity, this guide shows you, step by step, how the process works using Student LunchBox as a real-world example.
Things You’ll Need
A crypto wallet with Bitcoin, Ethereum, or other supported assets
The name of the nonprofit you want to support
Basic tax information and records for your donation
Step 1: Understand the Tax Basics of Donating Crypto
Before you donate cryptocurrency, it helps to know how the IRS views these gifts. Digital assets such as Bitcoin and Ethereum are considered property, not currency, for federal tax purposes.
If you donate crypto held for more than a year to a qualified charity, IRS guidance indicates that you generally do not recognize income, gain, or loss, and you may be able to deduct the fair market value of the asset. This is why many donors prefer cryptocurrency donations to cash contributions.
Step 2: Choose a Verified Nonprofit
Look for a registered public charity that aligns with your values and has clear information about how it uses cryptocurrency donations. Fidelity Charitable notes that interest in donating crypto has risen sharply, with hundreds of millions of dollars in digital assets contributed to donor-advised funds as donors seek to maximize impact and tax efficiency.
For example, in Los Angeles, Student LunchBox is a college hunger-relief nonprofit that uses crypto donations to support food distributions, mobile markets, and basic-needs programs for students. As with any organization, review its mission, financial transparency, and impact reports before you donate cryptocurrency to a nonprofit.
Step 3: Identify the Crypto Platforms the Charity Uses
Many charities rely on specialized platforms to handle cryptocurrency donations. The National Council of Nonprofits recommends using crypto processors that automate receipting and convert donations to cash, thereby simplifying accounting and reducing risk.
Student LunchBox, a nonprofit that combats college hunger in Los Angeles, for instance, utilizes two robust platforms, Every and Pledge, to accept crypto donations securely:
Every.org is a nonprofit platform that accepts more than 80 cryptocurrencies, converts them to U.S. dollars, and then grants the cash to nonprofits, which allows charities to receive funds without handling wallets or additional regulatory burdens.
PledgeCrypto, part of the Pledge fundraising ecosystem, lets over 2 million verified charities add a crypto donation button and accepts 25 cryptocurrencies, converting them to local currency for the nonprofit
Knowing which platforms a charity uses helps you donate crypto with confidence.
Step 4: Start Your Crypto Donation
Visit the charity’s donation page and select the option to donate crypto or cryptocurrency donations.
Choose your asset, such as Bitcoin or Ethereum. Platforms like Every.org and Pledge will show you a wallet address or QR code.
From your wallet, send the chosen amount. Double-check the address before confirming, since blockchain transactions are irreversible.
Save your transaction ID and the receipt generated by the platform for your records and potential tax deduction.
Every or Pledge will also provide you witn an appropriate documentation for you to provide it to your tax accountant.
Step 5: Confirm the Impact of Your Crypto Donation
After you donate crypto to a charity, most platforms issue a tax receipt and notify the nonprofit. Every.org notes that it converts donations instantly and grants the realized cash value to the charity on a regular disbursement schedule. Pledge similarly processes crypto and passes funds to verified nonprofits in local currency.
In the case of Student LunchBox, those funds can support college food pantries, mobile food distributions, and essential goods programs that help students stay enrolled and focused on their education.
By following these steps, you can donate crypto in a secure, tax-efficient way and help nonprofits such as Student LunchBox address urgent needs like college hunger.