Cryptocurrency Donations Now Accepted!
Did you know The Salvation Army is now accepting donations via cryptocurrency? That’s right!
While Bitcoin is the original cryptocurrency and most widely followed, there are several cryptocurrency options currently available to help us continue our mission of Doing the Most Good. Cryptocurrency donations are possible through The Salvation Army’s national partnership with Engiven.
Just like every other type of donation form, cryptocurrency will stay within the community in which it was given and will be used to support local year-round programs and services.
Below are some frequently asked questions pertaining to cryptocurrency donations. If you have further inquiries, email us at [email protected]
Cryptocurrency, also known as virtual currency or “crypto,” is a digital asset designed to function as an alternative to sovereign fiat currency (U.S. dollars, for example) whereby transactions between two parties are verified through a public, distributed ledger, also known as a blockchain. Most people think of Bitcoin and or Ether when they hear the word “Crypto,” and while Bitcoin is the original cryptocurrency and most widely followed, there are a number of cryptocurrencies currently available.
The Engiven platform is a third-party vendor provided donation software technology that enables nonprofits to safely and securely receive cryptocurrency donations and then convert those donations into usable fiat currency such as US dollars. Learn more about Engiven here.
Yes. It is lawful for a nonprofit to accept a donation in the form of a cryptocurrency. On March 2014, the United States Internal Revenue Service (IRS) ruled that Bitcoin is treated as property for tax purposes (IRS Notice 2014-21).
For U.S. tax purposes, transactions using virtual currency must be reported in U.S. dollars. Therefore, taxpayers will be required to determine the fair market value of virtual currency in U.S. dollars as of the date of donation. If a virtual currency is listed on an exchange and the exchange rate is established by market supply and demand, the fair market value of the virtual currency is determined by converting the virtual currency into U.S. dollars (or into another real currency which in turn can be converted into U.S. dollars) at the exchange rate, in a reasonable manner that is consistently applied. Donors who give cryptocurrency donations to The Salvation Army will receive an electronic donation receipt (through the Engiven donation platform) in U.S. dollars with comprehensive details about each transaction.
As with any form of electronic payment or transaction, there are risks. However, our vendor, Engiven, has created certain safeguards they believe are needed to ensure that the transaction is secure. With the transfer of cryptocurrency from donor to nonprofit, Engiven believes the transaction can actually be more secure than many other forms of payment, provided certain protocols are followed: 1) By using the Engiven platform, both the nonprofit and the donor are required to undergo a simple but effective Know Your Customer (KYC) and Anti-Money Laundering (AML) screening which provides a high level of background security to ensure both parties are properly screened; 2) As with any cryptocurrency transaction, when transferring your tokens to The Salvation Army's wallet to make a donation, do not expose or share your wallet’s private keys at any time.
If you would like to designate your cryptocurrency gift to a specific Salvation Army program or service, please contact [email protected]