Denver Rescue Mission is now accepting donations of cryptocurrency thanks to our secure, online donation platform provided by our friends at Engiven.
Frequently Asked Questions About Donating Cryptocurrency
Cryptocurrency, also known as virtual currency or “Crypto,” is a digital asset designed to function as an alternative to traditional currencies (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 or Ethereum when they hear the word “Crypto,” and while they are currently the most widely followed, there are thousands of unique cryptocurrencies in existence today.
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 U.S. dollars. Learn more about Engiven here.
Denver Rescue Mission established a relationship with Engiven in September 2021, and currently accepts 39 different types of cryptocurrencies through our crypto donation portal here.
No. Donors will not need an account with Engiven. Simply visit our cryptocurrency donation page and follow the prompts to complete your donation.
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 Denver Rescue Mission will receive an electronic donation receipt (through the Engiven donation platform) in U.S. dollars with comprehensive details about each transaction.
First, if you wish to deduct the donation on your taxes, you must include your name, email and mailing address on the giving form so Denver Rescue Mission can send you the proper paperwork.
For crypto donations valued over $250, a standard noncash donation receipt from Denver Rescue Mission will be required. An electronic version will be sent to you immediately once the donation has been completed, and the Mission will also send a printed version in the mail.
For crypto donations valued over $500, you also must file Form 8283 (Noncash Charitable Contributions).
For crypto donations valued over $5,000, it will be your responsibility to receive a qualified appraisal prepared by a qualified appraiser, and have him/her sign Form 8283 (Noncash Charitable Contributions). A signature from a representative from Denver Rescue Mission is also required on Form 8283 for a gift of this size. Soon after you make your gift, the Mission will mail a printed noncash donation receipt with further instructions.
Please Note: Cryptocurrency donated to Denver Rescue Mission is liquidated immediately after it is received. The value listed on your receipt will be the amount the Mission realizes upon sale of your donated coins. According to the IRS, determining final value of a cryptocurrency donation for tax purposes is the responsibility of the donor.
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 Denver Rescue Mission’s wallet to make a donation, do not expose or share your wallet’s private keys at any time.
Engiven has been instructed to immediately liquidate cryptocurrency donations to Denver Rescue Mission. DRM receives the cash proceeds in our checking account within a few business days.
If you would like to designate your cryptocurrency gift to a specific Denver Rescue Mission program, please contact Brad Jessen, Director of Philanthropy, at 303.313.2491 or contact Brad online.
Yes, as long as your cryptocurrency donation is valued at $5,000 or more and is made before the Mission exhausts its annual allocation of credits from the State, it is eligible for the Homeless Contribution Tax Credit program. Similar to a gift of stock, it will receive 25% credit. Learn more about the Homeless Contribution Tax Credit Program here.