Cryptocurrency Donations 101: What Nonprofit Fundraisers Need to Know Right Now

Crypto giving is no longer fringe—it’s a $100M+ channel your nonprofit can’t ignore. Here’s what you need to know about accepting Bitcoin, stablecoin donations, and setting up a crypto gift acceptance

Some years ago, if you’d told me I’d be writing a newsletter article on cryptocurrency donations, I’d have smiled politely and changed the subject.

And then I got acquainted with the space, met people in the crypto-digital art sector, and started learning from good actors (I also got burned once or twice along the way). There are great people in crypto if you take the time to learn and be discerning. The underlying blockchain technology is fascinating. There’s a lot of generosity. Now, I’m paying attention to the giving numbers.

In 2025, The Giving Block—one of the leading crypto donation platforms for nonprofits—processed over $100 million in cryptocurrency donations on behalf of its nonprofit clients. The average crypto gift last year? $11,019. Compare that to the average online gift of around $128, and you start to see why this is an interesting conversation.

Crypto isn’t fringe anymore, that’s the reality. This is where a significant and growing pool of philanthropic capital lives. And if your organization isn’t set up to receive it, you’re leaving real money on the table.

Museum of Fine Art, St. Petersburg, Florida. © Tonya Hennessey

So What Exactly Is a Crypto Donation?

When a donor gives cryptocurrency to your nonprofit, they’re transferring digital assets—most commonly Bitcoin (BTC) or Ethereum (ETH), though dozens of others are accepted—directly to your organization’s digital wallet or through a platform that handles the conversion. The IRS treats crypto as property, not currency, which has important implications for both the donor and the organization.

Here’s the part donors love: if someone bought Bitcoin years ago at a low price and it’s now worth significantly more, they can donate that appreciated crypto and avoid paying capital gains tax on the appreciation—while still claiming the full fair market value as a charitable deduction. It’s the same principle as donating appreciated stock, which many of us are already well versed in. Crypto just brings a newer, often younger donor pool into that conversation.

Who Is Giving Crypto—and Why Should You Care?

Crypto donors skew younger (but, don’t overlook the boomers and GenXers), more tech-savvy, and often hold significant assets in digital form. They may not show up in traditional wealth-screening data. They may never write a check. But they’re philanthropically motivated and looking for organizations that speak their language.

As Inside Philanthropy put it, “Crypto is often discussed as speculation or ideology. In the nonprofit world, it should be discussed as something simpler: An asset class a lot of younger people already own, and one they can donate with less friction than using a credit card.”

In 2025, stablecoin donations (cryptocurrencies pegged to the US dollar, like USDC and USDT) also surged, with donors giving over $32 million in stablecoins alone. This matters because stablecoins don’t carry the volatility risk of Bitcoin—meaning that the value doesn’t swing wildly between when a gift is made and when it’s received.

For nonprofits worried about receiving a $10,000 gift that’s worth $6,000 on a bad Friday, stablecoins offer a more predictable option.

What Do You Need to Get Started?

You don’t need to become a crypto expert. You need a few things:

• A gift acceptance policy that includes cryptocurrency. This is your first stop. Your board needs to approve a policy that addresses how crypto gifts will be received, valued, and liquidated—or held. Most organizations liquidate immediately to avoid volatility risk.

• A platform to receive and process donations. The Giving Block, Fundraise Up, and every.org all offer nonprofit-friendly crypto donation tools. They handle the technical heavy lifting, convert to cash, and provide the documentation your organization needs for IRS compliance.

• Basic donor communication. Create a landing page or FAQ on your website explaining that you accept crypto, how the process works, and the tax benefits. Many donors who hold crypto simply don’t know their favorite nonprofits can receive it.

These are the basics to get started. Your organization doesn’t need to hold crypto on your balance sheet. You don’t need a fully-dedicated staff person. You need a policy, a platform, and a landing page on your website.

A Note on IRS Rules: For gifts of cryptocurrency valued at more than $250, your organization must provide a contemporaneous written acknowledgment, the same as with any other gift. For gifts of $500 or more, the donor needs to file IRS Form 8283 for non-cash charitable contributions. For gifts over $5,000, a qualified appraisal is required. A valuation simply reported by a cryptocurrency exchange does not satisfy this requirement.

We’ll spend more time on crypto philanthropy over the coming months—including this Thursday’s Premium deep dive on setting up your program step by step. But this is your starting line. The donors are already there. The question is whether your organization is ready to meet them.