How to donate cryptocurrency?

Bitcoin, ETH, and other cryptocurrencies can make your giving more widespread. Also: 15 nonprofits accepting crypto.

In December 2017, an anonymous crypto investor calling himself “Pine” founded the Pineapple Fund as an “experiment in philanthropy with crypto.” Pine has donated $55 million worth of Bitcoin to 60 different charities, with a variety of focus areas, from the environment and mental health to social justice and homelessness.

Charitable giving via cryptocurrencies has become an option for a growing number of individuals and organizations. Some of the world’s largest charities, including the Red Cross and the United Way, accept cryptocurrencies.

Since 2018, GiveCrypto.org has been working to alleviate poverty through direct, community-based crypto donations (Coinbase CEO Brian Armstrong is one of the founders). In 2019, UNICEF announced that the agency had become the first UN organization to hold and trade cryptocurrencies through a designated crypto fund. You can also learn more about Daffy, a donation platform that gives all donations to nonprofits and charities in cash and allows you to choose from over 1.5 million organizations Daffy supports.

The ability to donate quickly and anonymously from any country in the world without incurring high fees is a technological innovation unique to cryptocurrency that makes giving more efficient, fair, and simple.

Cryptocurrency is private

Cryptocurrency helps address privacy and data protection issues that are increasingly relevant to donors. A 2022 survey conducted by Ipsos on behalf of Google showed that the vast majority of Americans of all ages are concerned about the privacy and security of personal data in philanthropy.

Donating cryptocurrency directly to charitable organizations can better protect personal information and potentially put more funds to the causes you care about.

Cryptocurrency can enjoy tax benefits

Let's say you bought $2,000 in Bitcoin in April 2021, when the price of one Bitcoin was $60,000. As of April 2024, the price of one Bitcoin is $66,000, and the fair market value of the Bitcoin you own is now $2,200. You decide to donate the entire amount to your favorite IRS-approved charity. Here are two ways to donate:

Sell Bitcoin, Donate USD: If you sell Bitcoin first and then donate USD, you may incur a long-term capital gains tax of up to 20% (not including additional Medicare surcharges or state and local taxes), which is about $440.

Final donation amount: about $1,760.

Donate Bitcoin directly: If you donate Bitcoin directly, your donation is tax-free and can have a greater impact. If you donate Bitcoin directly, you may not have to pay capital gains tax on Bitcoin.

Final donation received: about $2,200.

It costs organizations less to process cryptocurrency donations

According to the 2020 Global Giving Trends Report, 63% of donors worldwide prefer to donate online via debit or credit card. But if you use a credit card, the actual amount of donations received by these organizations will be less, because fees ranging from 2.2% to 7.5% will be deducted (according to Charity Navigator, a nonprofit that rates online donation processing platforms).

How big is the difference? Let's say you want to donate $1,000.

Donate by credit card: The organization will incur a maximum of $75 in fees.

Final donation received: $925

Donate by cryptocurrency: Donating the same amount in Bitcoin will incur a transaction fee of about $8.70 (based on the median transaction fee as of April 6, 2021 provided by CoinMetrics.io).

Final donation received: $991.28

Stablecoins can reduce the volatility of cryptocurrencies

Organizations that want to take advantage of the benefits of cryptocurrencies without taking on the risk of volatility can also accept USDC or stablecoin donations. USDC is a cryptocurrency that is fully pegged to and redeemable for the US dollar. Any organization that has enabled Coinbase Commerce can accept USDC.

(If an organization is willing to accept crypto, it can set up a Coinbase Commerce account and, in a few minutes, accept donations in five different cryptocurrencies.)

Which nonprofits accept crypto?

Whether you want to support initiatives around clean water, early childhood education, or human rights, dozens of organizations are ready to accept crypto donations. Here’s a list of popular choices:

Daffy Charitable: With the Daffy mobile app, you can easily donate crypto to more than 1.5 million organizations, and the nonprofits and charities of your choice will receive the funds in cash.

Electronic Freedom Foundation: “Founded in 1990, the Electronic Freedom Foundation advocates for respect for user privacy, free expression, and innovation through impact litigation, policy analysis, grassroots activism, and technology development. We work to ensure that rights and freedoms are strengthened and protected as the use of technology grows.” Accepts: Bitcoin, Bitcoin Cash, and Ethereum.

Freedom of the Press Foundation: "Freedom of the Press Foundation works to preserve and strengthen the rights of the press guaranteed by the First and Fourth Amendments through a variety of avenues, including developing cryptographic tools, documenting attacks on the press, training newsroom staff in digital security practices, and advocating for the public's right to know." Accepts: Bitcoin, Bitcoin Cash, Ethereum, Litecoin, and Zcash.

GiveCrypto.org: In 2018, Coinbase co-founder Brian Armstrong founded the nonprofit GiveCrypto to distribute cryptocurrency to people living in poverty. GiveCrypto has distributed over $300,000 in cryptocurrency to over 5,000 people in 13 different countries. Accepts: Bitcoin, Bitcoin Cash, Ethereum, Litecoin, and USDC sent via Coinbase Commerce.

Greenpeace: "Greenpeace is a global, independent campaign organization that uses peaceful protest and creative communication to expose global environmental issues and promote solutions that are vital to Greenpeace's future." Accepts: Bitcoin.

Internet Archive: "We began collecting archives of the Internet in 1996, when Internet use was just beginning to take off. Like newspapers, content published on the web is ephemeral, but unlike newspapers, no one is saving it. Today we have access to over 20 years of web history through the Wayback Machine, and we work with over 625 libraries and other partners to identify important web pages through the Archive-It program." Accepts: Bitcoin, Bitcoin Cash, Ethereum, XRP, and ZCash.

Human Rights Foundation: "We are a nonpartisan, nonprofit organization dedicated to promoting and protecting human rights around the world, with a focus on closed societies. The Human Rights Foundation unites people in the common cause of defending human rights and promoting liberal democracy. Our mission is to ensure that freedom is preserved and promoted around the world." Accepts: Bitcoin and Ethereum.

Khan Academy: "Khan Academy helps students learn at their own pace in and out of the classroom with exercises, instructional videos, and a personalized learning dashboard. We offer courses in math, science, computer programming, history, art history, economics, and more. Our math tasks use state-of-the-art adaptive technology to identify students' strengths and learning gaps, providing guidance from kindergarten to calculus." Accepts: Bitcoin, Bitcoin Cash, Litecoin, and Ethereum.

Rainforest Foundation: "The Rainforest Foundation works locally to fight for land rights for Indigenous peoples. We help Indigenous peoples strengthen land security and train Indigenous communities to use technology to protect forests. We invest directly in Indigenous communities and provide tools, training, and resources needed to protect rainforests to Indigenous peoples who are actively protecting their ancestral lands." Accepts: Bitcoin, Bitcoin Cash, Ethereum, and Litecoin.

The Reagent Project: "The goal of The Reagent Project is to distribute excess scientific equipment and reagents that are not being used in labs across the United States to talented researchers who need these items and lack resources." Accepts: Bitcoin, Bitcoin Cash, Ethereum, Litecoin, and USDC sent via Coinbase Commerce.

Red Cross: "The International Red Cross and Red Crescent Network is the world's largest humanitarian network, with offices and activities in nearly every country and region. All Red Cross and Red Crescent activities are centered around one purpose: to help those who suffer, whether during conflict, in response to natural or man-made disasters, or due to chronic poverty." Accepts: Bitcoin sent via Bitpay (Note: Bitpay may charge a conversion fee).

Tor Project: "At the Tor Project, we fight every day for everyone to have private access to an uncensored internet, making Tor the world's most powerful tool for online privacy and freedom. But Tor is more than just software. It's a labor of love from people around the world who are committed to human rights." Accepts: Bitcoin, Augur, Dash, Litecoin, Monero, Stellar Lumen, ZCash, and Ethereum.

The Water Project: "The Water Project is a 501(c)(3) nonprofit dedicated to advancing development by providing reliable access to clean water and adequate sanitation in communities across Sub-Saharan Africa." Accepts: Bitcoin, Bitcoin Cash, Ethereum, Litecoin, and USDC via Coinbase Commerce.

United Way: "United Way envisions a world where every person has the opportunity to succeed and entire communities thrive as a result. With the help of millions of people around the world, we get closer to that goal every day. Our work is driven by the passion of our 2.8 million volunteers and 9.8 million donors who give their time, money, and voices to improve the lives of others." Accepts: Bitcoin via Bitpay (note: Bitpay may charge a conversion fee).