If you've been holding onto cryptocurrency and wondering how to make a real impact with it, you're in the right place.
Donating crypto to charity isn't just smart, it can also be simple, fast, and surprisingly rewarding. Whether you’re passionate about a specific cause or just looking to give back in a way that makes sense for your financial goals, crypto donations offer a powerful path.
At Harness, we work with nonprofits and donors every day, helping turn digital assets into real-world impact. From avoiding capital gains tax to making sure every dollar goes further, we’ve seen firsthand how crypto can change the game for giving. This guide walks you through the why, how, and what of crypto donations, so you can give with confidence and get the most out of your generosity.
Ready to amplify your giving with digital assets? Harness is here to help you give smarter and grow your impact.
Why donate crypto to charity?
Let’s be honest, crypto has had its ups and downs. But if you’ve held onto your digital assets, donating them can be one of the most meaningful (and financially smart) ways to give back.
When you donate crypto, like bitcoin or ethereum, directly to a nonprofit, you might avoid paying capital gains tax. That means more money goes to the cause you care about, not to the IRS. Plus, you could still get a charitable tax deduction based on the full value of your gift. That’s a win-win.
And here's something we’ve seen often: nonprofits love crypto gifts. They usually come in larger amounts than traditional donations, and they help reach new, younger donors who are excited about giving in a way that matches how they live and invest.
There’s also something satisfying about knowing your donation can go straight to work, fast. With lower fees than credit cards and instant transfer, crypto helps nonprofits keep more of what you give.
The tax benefits of cryptocurrency donations
Here's where donating crypto really starts to shine: taxes. If you've ever sold a digital asset like bitcoin or ethereum, you probably know that the IRS sees it as property. That means when its value goes up and you sell it, you're on the hook for capital gains tax. But when you donate it instead? That tax bill can disappear.
If you've held your crypto for over a year, and you give it directly to a nonprofit, you could skip the capital gains tax and still get a charitable deduction based on the asset’s full market value. That’s a big deal.
We’ve worked with donors who were surprised at how much they saved just by donating instead of selling. And nonprofits get the full value, too, no chunk lost to taxes or processing fees.
That said, we always recommend checking in with a tax advisor. Crypto tax rules can be tricky, and it’s worth getting it right. Just make sure you get a receipt from the nonprofit and track the value at the time of the donation. The IRS likes documentation, especially when it comes to digital assets.
Bottom line: donating crypto can be one of the most tax-efficient ways to give. It’s a smart move that feels good and does good.
How to donate crypto: step-by-step guide
Donating crypto might sound complicated, but honestly, it’s easier than most people think. Whether it’s your first time or you’ve done this before, here’s the simple flow we’ve seen work for donors across the board:
Step 1: Pick your cause
Start with a nonprofit you believe in. Not every organization accepts crypto yet, so make sure they do. If they use a platform like Harness, you’re in great hands, it’s designed to make the process smooth for both sides.
Step 2: Choose your digital asset
This could be bitcoin (BTC), ethereum (ETH), bitcoin cash (BCH), or even tokens like 0x (ZRX). Most platforms support the major ones, but it’s smart to double-check with the nonprofit, just ask, “Which cryptocurrency do you accept?”
Step 3: Make the donation
You’ll either send your crypto to a wallet address the nonprofit provides or use a donation form through a crypto processor. Some processors even give you the option to donate anonymously, while others might ask for your name and email address to send you a tax receipt.
Step 4: Get your receipt
You’ll want to hang onto this for tax time. It should include the date, the type of cryptocurrency donated, and your gift’s fair market value.
Step 5: (Optional) Contact the nonprofit
If you're donating a large amount or want to make sure your gift goes to a specific program, reach out and let them know. A simple “please contact me” message can help personalize your donation even more.
That’s it. No guesswork, no long forms, and no third-party headaches. With the right tools in place, giving crypto can be just as easy, and way more impactful, than traditional donations.
How nonprofits can accept cryptocurrency donations
If you're a nonprofit leader or fundraiser, accepting crypto might feel like a big leap. But from what we’ve seen, it’s actually one of the easiest ways to open up a new revenue stream, especially with the right setup.
First, you’ll need a way to receive donations. That could be a direct crypto wallet or a donation platform that handles the process for you. Many nonprofits choose a processor to skip the technical heavy lifting and make sure things stay secure.
Next, think about having a basic gift acceptance policy. It doesn’t have to be complicated, just a short guide that says which digital assets you accept, how you handle them (convert right away or hold), and who on your team manages donations. This builds trust with donors and keeps your board confident, too.
From a tax and reporting perspective, crypto gifts work a lot like stock donations. But there are a few extra details around valuations and receipts, so it helps to have an accountant or advisor who understands digital assets.
The most tax-efficient digital assets to donate
Not all cryptocurrencies are created equal when it comes to tax-smart giving. We've seen donors get the best results when they’re strategic about which assets they donate, and when.
If you’ve held a digital asset like bitcoin (BTC) or ethereum (ETH) for more than a year, that’s usually the sweet spot. You can deduct the full fair market value and skip paying capital gains tax. That makes these long-term assets some of the most tax-efficient to give.
Bitcoin cash (BCH) and tokens like 0x (ZRX) can also be great options, especially if they’ve gained value since you bought them. Just keep in mind: if the asset dropped in value, it might make more sense to sell first, take the loss for tax purposes, and then donate the cash.
Stablecoins are a different story. Since their value doesn’t change much, they won’t help you avoid capital gains, but they can still be useful if you want to give a predictable dollar amount or support a nonprofit that prefers stability.
No matter what you choose to donate, timing and documentation are everything. Make sure to track when you bought the asset, its value on the day you donate, and how the nonprofit processes it.
If you’re ever unsure, talk to a tax advisor, they can help you plan a gift that checks every box.
Real-world scenarios: when crypto donations make the most sense
We’ve worked with all kinds of donors over the years, and one thing is clear, there’s no one-size-fits-all reason to give. But there are a few situations where donating crypto can be especially powerful. Here are some real examples:
A high-earning investor with long-held assets
Imagine someone who bought bitcoin years ago and watched it grow. If they sell, they’re looking at a big capital gains tax bill. But by donating instead, they avoid that tax and get a charitable deduction.
A younger donor with smaller holdings
You don’t have to be a millionaire to make an impact. We’ve helped donors give smaller amounts of ethereum or altcoins like ZRX. Even modest gifts can support meaningful programs, especially when nonprofits are set up to receive them efficiently.
A nonprofit looking to diversify
One nonprofit we supported added crypto donations right before a major giving campaign. It opened the door to a whole new group of tech-savvy supporters. They raised more than expected, without needing a huge budget or technical team.
Tip: A simple chart or table comparing donation methods, crypto vs cash vs stock, can help donors see the difference clearly. It’s something we often include in campaigns for clarity and transparency.
Crypto giving isn’t just for a niche group anymore. With the right tools and timing, it can be a smart move for almost anyone.
Common mistakes to avoid when donating crypto
Even though donating crypto is pretty straightforward, there are a few common slip-ups that can cost you time, money, or both. We've seen them enough times to know they’re worth calling out, so you can avoid them completely.
Not holding the asset long enough
To get the full tax benefit, you need to hold your crypto for over a year. If you donate it too soon, your deduction is based on what you paid for it, not what it’s worth now. That could be a big difference.
Skipping the paperwork
Yes, crypto is fast. But that doesn’t mean you can skip the documentation. You’ll need a proper tax receipt from the nonprofit and proof of the asset’s value at the time of the donation. The IRS doesn’t play around when it comes to digital assets.
Donating unsupported coins
Not every nonprofit accepts every type of cryptocurrency. We’ve seen donors send something like ZRX or a new altcoin, only to find out the organization can’t process it. Always check first, "Which cryptocurrency do you accept?" is a simple but important question.
Forgetting to talk to a tax advisor
Crypto taxes can get tricky fast, especially if you’ve got gains, losses, or past transactions involved. A good tax advisor can help you plan smarter and avoid surprises at filing time.
Using the wrong platform
Sending crypto directly from an exchange or personal wallet without confirming details can lead to lost donations, or delays. Working with a platform like Harness helps keep everything smooth, secure, and donor-friendly.
Avoid these bumps in the road, and your donation will do exactly what it’s meant to, support a great cause and work for you, too.
Make your crypto work for good
Crypto is changing the way people give, and that’s a good thing. It’s fast, secure, and incredibly tax-smart when done right. Whether you’re donating bitcoin, ethereum, or another digital asset, you’re not just moving money. You’re building momentum for the causes you care about most.
At Harness, we’ve seen firsthand how powerful crypto giving can be. We’ve helped nonprofits get started, donors save big, and entire communities benefit from a more efficient way to give. And we’re just getting started.
So if you're ready to make your crypto work harder for good, we’re here to help, every step of the way.
Whether you’re a donor or a nonprofit, Harness makes giving and receiving crypto easy, secure, and built for impact. Let’s grow your mission together.
