Education & Research · 501(c)(3)

Crypto giving

Give the asset, not the tax bill

Donating appreciated digital assets held for more than a year is often the most tax-efficient gift you can make: a deduction for full fair market value, and no capital-gains tax on the appreciation.

Why donate the asset itself

Sell first, and you owe capital-gains tax before a dollar reaches charity. Donate the asset directly, and — for digital assets held more than one year — you may generally deduct the full fair market value, subject to the usual AGI limits, and the built-in gain is never realized by you or by us.

A worked example. You hold bitcoin worth $1,000,000 that you bought more than a year ago for $100,000. Sell it and you realize a $900,000 long-term capital gain — roughly $214,000 in federal capital-gains and net investment income tax at top rates — before you can give what remains. Donate the bitcoin directly and there is no sale: no gain is realized, and your charitable deduction is the full $1,000,000 fair market value, subject to AGI limits.

The appraisal rule most donors miss

Any charitable deduction for donated crypto over $5,000 requires a qualified appraisal from a qualified appraiser. In Chief Counsel Advice 202302012, the IRS confirmed that an exchange-quoted price does not substitute for the appraisal — even for actively traded assets — and that skipping it can cost the entire deduction.

We take the paperwork as seriously as the gift. We sign the donee acknowledgment on your Form 8283 promptly, and we file Form 8282 when a later disposition of the donated asset requires it. The appraisal itself must come from an independent appraiser engaged and paid by the donor; we can point you to qualified options, but we do not select or pay the appraiser.

Your receipt

Every gift receives a contemporaneous written acknowledgment describing the donated asset. Consistent with IRS rules, the receipt describes the gift but does not assign it a value — for gifts over $5,000, valuation belongs to your qualified appraisal.

How to give

Large gifts get a concierge, not a widget. Every gift receives a fresh, per-gift receiving address — never a reused or published one — and we confirm that address with you directly before you send anything. Before the transfer, we walk you through the qualified-appraisal requirement so the deduction is protected from day one, and we sign your Form 8283 promptly after the gift. For positions large enough that an ordinary on-exchange sale could matter, we plan the handling in advance, including over-the-counter (OTC) execution where appropriate.

Seven-figure gift? Talk to us first.

A gift of that size deserves a conversation before anything moves. Tell us what you would like to give and we’ll come back with the per-gift receiving address, appraisal guidance, and a transfer plan. Prefer email? info@digitalassettax.org reaches the same people.

Digital Asset Tax Action is recognized by the IRS as a tax-exempt public charity under Section 501(c)(3) of the Internal Revenue Code, effective March 17, 2026. Contributions are tax-deductible to the extent permitted by law under Section 170.

Giving cryptocurrency you have held for more than one year directly to Digital Asset Tax Action is often more tax-efficient than selling first and donating the cash: you generally may deduct the asset’s fair market value on the date of the gift and avoid the capital gains tax you would owe on its appreciation, to the extent allowed by law.

This page is educational and does not constitute tax or legal advice for your specific situation. For questions about your own gift, consult a qualified tax professional.

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