Crypto Donations and US Taxes: A Donor’s Guide
How the IRS treats a gift of cryptocurrency: what you can deduct, why giving crypto directly can beat selling it first, the paperwork at each gift size, the qualified appraisal rule that catches many crypto donors out, and what changes from 2026.
By Global Relief Group · Last updated:
Crypto is property
The IRS treats cryptocurrency, including stablecoins, as property. A crypto gift follows the rules for non-cash gifts, not cash.
Holding period decides
Held more than a year: deduct fair market value. Held a year or less: deduct the lower of what you paid and its value.
Over $5,000? Get an appraisal
The IRS says an exchange price isn’t enough. Above $5,000 you need a qualified appraisal to claim the deduction.
Before you read
This guide explains the federal rules as published by the IRS. It isn’t tax advice, and your situation may differ, so check with a qualified tax adviser before relying on a deduction. State rules vary.
Is my crypto donation tax-deductible?
Donations through DonateCrypto go to Global Relief Group, a US 501(c)(3) public charity (EIN 27-3281810), so gifts may be tax-deductible for US taxpayers who itemize. You can confirm any charity’s status yourself in the IRS Tax Exempt Organization Search by entering its EIN.
From 2026, the new deduction for people who don’t itemize applies to cash gifts only. Crypto is property, so it doesn’t qualify: you can only deduct a crypto gift if you itemize.
If you pay tax outside the US, US deductibility doesn’t apply to you. The rules in your own country decide whether a gift to a US charity is deductible.
How much you can deduct
Under the IRS’s answers on digital assets, your deduction depends on how long you held the crypto before giving it:
| You held the crypto | Your deduction is generally | Example |
|---|---|---|
| More than one year | Its fair market value when you give it | Bought BTC for $2,000 three years ago, worth $10,000 today: deduct $10,000 |
| One year or less | The lower of what you paid (your basis) and its fair market value | Bought ETH for $5,000 eight months ago, worth $6,000 today: deduct $5,000 |
| Any period, now worth less than you paid | Its fair market value | Bought SOL for $4,000, worth $2,500 today: deduct $2,500 (the $1,500 loss isn’t deductible) |
Giving crypto vs selling it first
For crypto that has gone up in value and that you’ve held more than a year, giving it directly is usually better than selling it and donating the cash. Long-standing IRS guidance, in its earlier virtual currency FAQ, says that when you donate crypto to a qualified charity, you don’t recognize income, gain or loss on the donation. So you can deduct the full market value without paying capital gains tax on the increase.
- Give the crypto: worth $10,000, bought for $2,000, held three years. You deduct $10,000, and the $8,000 gain is never taxed.
- Sell, then give the cash: you report an $8,000 long-term capital gain and pay tax on it, then deduct the cash you give. The charity receives less, or you pay more.
For crypto that has gone down in value, it’s usually the other way round. Donating it directly limits your deduction to its current value and the loss is lost. Selling first lets you claim the capital loss (up to $3,000 a year, or $1,500 if married filing separately, against ordinary income, with the rest carried forward), and you can then donate the cash. This is general guidance built from two IRS rules, not a recommendation for your situation.
The paperwork by gift size
| If your deduction is | You need |
|---|---|
| Any amount | Your own records of the gift (see below) and, ideally, our receipt |
| $250 or more for a single gift | A written acknowledgment from the charity, received by the time you file and no later than your return’s due date (including extensions). Our emailed receipt is designed to meet this requirement. |
| More than $500 in total non-cash gifts for the year | IRS Form 8283 filed with your return. Section A covers items of $5,000 or less. |
| More than $5,000 for an item or group of similar items | A qualified appraisal, and Form 8283 Section B, including the charity’s signature in the Donee Acknowledgment part. |
| More than $500,000 | All of the above, plus a copy of the appraisal attached to your return |
When the charity signs Form 8283, it confirms it received the property on the date shown. The IRS is explicit that the signature does not mean the charity agrees with the value you claim.
The qualified appraisal rule
This is the rule that catches crypto donors out. Publicly traded stock doesn’t need an appraisal, because its price is readily available. Crypto does, even though exchanges show a price every second.
- An exchange price isn’t enough. In a 2023 Chief Counsel memo (CCA 202302012), the IRS concluded that a donor who claimed a $10,000 deduction for crypto based on an exchange price, without a qualified appraisal, wasn’t entitled to it, and that “reasonable cause” didn’t excuse the missing appraisal. The memo can’t be cited as precedent, but it shows the IRS’s position, and the IRS’s own Q&A says the same.
- Timing. The appraisal must be signed and dated no earlier than 60 days before your gift, and you must receive it before your return’s due date, including extensions.
- Who can’t appraise it. You, the charity receiving the gift, and anyone who was party to your purchase of the crypto. Global Relief Group can’t appraise gifts made to it.
- Similar items are added together. The $5,000 test applies to an item or a group of similar items given during the year, even to different charities. Form 8283 lists digital assets as a single type of property, so several crypto gifts are likely to count together.
- The appraisal fee isn’t deductible as part of your charitable gift.
Limits on how much you can deduct in a year
- Crypto held more than a year, given to a public charity: you can deduct up to 30% of your adjusted gross income (AGI) for the year. Anything above that can generally be carried forward for up to five years.
- Alternatively, you can choose to deduct only your cost basis instead of market value, in which case the higher 50% limit applies. The choice applies to all such gifts of appreciated property you make to public charities that year, including stock, so ask your tax adviser first. It usually only makes sense when the property hasn’t gained much.
- Crypto held a year or less: since the deduction is generally your basis, the 50% limit for non-cash gifts applies.
What changes from 2026
The tax law signed in July 2025 changes charitable deductions from the 2026 tax year:
- A 0.5% floor for itemizers. You can only deduct charitable contributions above 0.5% of your AGI. With an AGI of $200,000, for example, the first $1,000 of gifts isn’t deductible.
- A reduction for the top bracket. If your taxable income, figured before itemized deductions, is above $640,600 (single) or $768,700 (married filing jointly), itemized deductions are reduced by 5.4% of the lesser of your itemized deductions or the amount over that threshold. In effect, each dollar of deduction is worth about 35 cents rather than 37.
- A new deduction for non-itemizers of up to $1,000 ($2,000 for joint filers), for cash gifts only. Crypto doesn’t qualify.
Proposed changes to watch. On 16 September 2026 the House Ways and Means Committee approved the Digital Asset Tax Certainty Act (H.R. 10357). If it becomes law as approved, it would apply the wash-sale rule to most crypto other than US-dollar stablecoins, for sales after 14 September 2026, and from 2027 would treat gifts of widely traded crypto more like gifts of listed shares, which could remove the need for a qualified appraisal for many donors. It had not been passed by Congress at the time of writing; until it is, the rules on this page apply.
Your receipt from us
If you give an email address when you donate, our team emails your official receipt once the transaction is verified on the blockchain. It states the organization’s name (Global Relief Group) and EIN, the coin and quantity received, the date, and that no goods or services were provided in exchange for your gift.
In line with IRS rules for property gifts, the receipt describes what we received but doesn’t state a dollar value: valuing the gift is the donor’s responsibility, through an appraisal where one is required. If you need us to sign Form 8283, or have lost a receipt, contact us.
No email, no receipt
If you donated without giving an email address, you won’t get a receipt automatically. Contact us with your transaction ID before you file: without a written acknowledgment, you can’t deduct a gift of $250 or more.
The digital asset question on Form 1040
Form 1040 asks whether, during the year, you received a digital asset as a reward, award or payment, or sold, exchanged or otherwise disposed of one. A donation disposes of the crypto, so most donors will answer “Yes”. The IRS instructions don’t mention donations by name, so confirm with your tax preparer.
Records to keep
- When you acquired the crypto, which decides the holding period.
- What you paid for it (your cost basis).
- The transaction ID of your donation and the date you sent it.
- Evidence of its value on the day you gave it, and the qualified appraisal if you claim more than $5,000.
- Our receipt, and the signed Form 8283 if one was needed.
Charities have obligations too: a charity that sells or otherwise disposes of donated property within three years generally files IRS Form 8282 and gives the donor a copy.
Common questions
Is donating crypto better than donating cash?
For crypto you’ve held more than a year that has gone up in value, giving it directly is usually more tax-efficient, because you can deduct its full value without paying capital gains tax on the increase. For crypto that has fallen in value, selling first and donating the cash is often better.
Do I need an appraisal for a $3,000 crypto gift?
Not for that gift on its own. But if your crypto gifts in the same year add up to more than $5,000, even to different charities, you likely need a qualified appraisal. Form 8283 treats digital assets as one type of property.
Are stablecoin gifts treated like cash?
No. The IRS lists stablecoins as digital assets, so USDT and USDC follow the rules for property, including Form 8283 and the $5,000 appraisal rule. Because they’re designed to stay near $1, your basis and the value are usually close.
Does your receipt show a dollar value?
No. It describes the coin and quantity received, as IRS rules expect for property gifts. You determine the value for your return.
Can I deduct crypto if I don’t itemize?
No. The new deduction for non-itemizers that starts in 2026 covers cash gifts only.