Glossary
Fundraising

Crypto Donation

By: Alec Hollingsworth
Updated:  
July 2, 2025

Definition:

A crypto donation is a charitable gift given using digital currencies like Bitcoin or Ethereum instead of traditional money.
A crypto donation is a charitable contribution made using cryptocurrencies, such as Bitcoin, Ethereum, or other digital assets, rather than traditional currencies. Nonprofits receive these donations through digital wallets or third-party processors that facilitate conversion to fiat currency. Crypto donations can be especially attractive to donors for their potential tax benefits and privacy, while allowing nonprofits to tap into a new donor demographic. However, nonprofits must address considerations like regulatory compliance, secure storage, and volatility in crypto value. As digital currencies gain popularity, more organizations are exploring crypto donations as a way to diversify their fundraising streams and reach tech-savvy supporters.

Key Takeaways

  • Crypto donations use digital currencies for charitable giving.
  • They offer potential tax advantages and donor privacy.
  • Nonprofits must ensure regulatory compliance and secure handling.
  • Accepting crypto can expand your donor base.
  • Tracking and reporting is crucial for transparency.

Why It Matters

Crypto donations open new fundraising channels and attract innovative donors.

Real World Example

A nonprofit animal shelter decides to accept cryptocurrency donations after noticing interest from younger tech-savvy supporters. They set up a secure digital wallet and promote this new giving option across social media and newsletters. Within a month, a donor contributes 0.5 Bitcoin, which the shelter converts to local currency to fund new kennels and veterinary services. The donor benefits from a tax deduction, and the shelter diversifies its revenue stream, drawing attention from a broader online community.

How Keela Helps

Keela empowers nonprofits to track and report all types of donations, including crypto gifts. By integrating crypto donation records into your Keela dashboard, you can maintain accurate and compliant financial records, ensuring transparency and ease of stewardship for every donor—no matter their preferred payment method.

Frequently Asked Questions

What is a crypto donation?

A crypto donation is a charitable gift made using cryptocurrencies like Bitcoin or Ethereum instead of traditional cash or checks.

Why should nonprofits accept crypto donations?

Accepting crypto donations can diversify fundraising streams, attract new donors, and potentially offer tax benefits to supporters.

How do nonprofits handle the volatility of cryptocurrencies?

Many nonprofits use third-party processors to convert crypto donations to fiat currency immediately, reducing exposure to price fluctuations.

Are crypto donations tax-deductible?

In many jurisdictions, crypto donations are treated as property and can be tax-deductible, but donors and nonprofits should consult tax professionals.

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