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Do you accept Crypto and who is your clearinghouse?
JanetAnderson
Posts: 3 ✭
We've been approached a handful of times by individuals who want to gift us crypto currency and we would like to accept it after it's been converted to cash.
Do any of you work with organizations that turn crypto to cash for a small fee? Do you like working with them? Are their fees reasonable? Are they on the "up and up"?
Thanks in advance for any and all information shared.
3
Comments
We accept crypto currency donations, treat them like stock gifts in CSuite, and our clearing house is The Giving Block. It hasn't been something that's generated a lot of buzz for us yet.
We use BitPay. Their fees are MUCH lower than the Giving Block, but their site is very bare bones. I believe the Giving Block has more bells and whistles. The main issue with crypto is getting set up with a wallet. There is a KYC process (Know Your Customer) that they make you go through that takes several weeks. You have to fill out a bunch of stuff and they do due diligence on you. This is so they can be sure you're legit and not trying to launder money. Any site you choose will have to put you through the same process. Once you get through that process, accepting crypto is a breeze. We sell it immediately. We haven't had any recent donations since the crypto market cratered.
We use Engiven https://www.engiven.com/. They are set up for nonprofit donations, accept almost 100 different currencies, fees are reasonable, quick simple process. We, too, have had no crypto donations this year.
We have not yet had a gift of crypto, but are prepared to do so through Dechomai Foundation. This was started by a trusted colleague Bryan Clontz, the president and founder of Charitable Solutions, LLC. He is one of the thought leaders in the realm of noncash gifts. In fact, he was one of the first people to become a qualified appraiser for crypto.
From their website:
To minimize risks of being on the chain of title, tax issues or a very short decision period, charities may refer non-cash assets like real estate, privately-held business interests, cryptocurrency and any other illiquid asset to the Dechomai Foundation – a national donor advised fund dedicated to non-cash assets.
Hopefully you help your crypto donors by letting them know that the IRS treats crypto donations like tangible personal property and NOT like cash or securities. A value of $5,000 or more requires a qualified appraisal and Form 8283 if a tax deduction is to be taken.
Kent
The Wyoming Community Foundation has recently signed up with the Giving Block - we have not yet been approached but wanted to be prepared.
Misty