Cryptocurrency Donation FAQs
WHAT IS CRYPTOCURRENCY?
Cryptocurrency, also known as Virtual Currency or “Crypto,” is a digital asset designed to function as an alternative to sovereign fiat currency (US 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.
WHAT IS THE GIVING BLOCK?
The Giving Block 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 US dollars, virtually instantaneously. Learn more about The Giving Block by visiting thegivingblock.com/faq.
IS IT LEGAL FOR RONALD McDONALD HOUSE CHARITIES OF SOUTHERN ARIZONA TO ACCEPT DONATIONS OF CRYPTOCURRENCY?
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).
HOW ARE CRYPTOCURRENCY DONATIONS TREATED FOR FEDERAL TAX PURPOSES?
Cryptocurrency is treated as property by the IRS. 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 at the exchange rate, in a reasonable manner that is consistently applied.
Donors who give cryptocurrency donations to Ronald McDonald House Charities of Southern Arizona will receive an electronic donation receipt (through The Giving Block) in US dollars with comprehensive details about each transaction.
DOES MY DONATION QUALIFY FOR THE ARIZONA TAX CREDIT?
No, donations of cryptocurrency are considered donations of property, and thus do not qualify for the Arizona Charitable Tax Credit. The Arizona Department of Revenue states that tax credit-eligible donations must be made in cash. While you could convert your cryptocurrency to US Dollars elsewhere and then donate to RMHC, please be aware that there may be other considerations (such as capital gains) to take into account. If you have other questions, we recommend that you consult your tax advisor.
IS THE PROCESS OF GIVING CRYPTOCURRENCY SAFE AND SECURE?
Crypto is Fast, Transparent, and Secure
Unlike traditional transaction methods such as credit card payments and ACH or wire transactions, which can take days to process completely and clear, sending bitcoin and other cryptocurrencies directly to a nonprofit only takes around 10 minutes until the nonprofit receives the funds.
This means donors can almost instantly verify the receipt of their gift by the nonprofit from anywhere in the world. If you provide an email address at the time of donation, you’ll have a receipt emailed as soon as the transaction is confirmed.
Because a blockchain relies on networks of thousands of computers to verify transactions, it is nearly impossible to tamper with the ledger. This layer of security should put donors at ease, especially when making large financial gifts. Even better—for nonprofits, there’s no risk of chargebacks like there are with credit cards.
Nonprofits using The Giving Block’s donation platform have custody and liquidity provided by Gemini, a licenced trust company that is regulated by the New York State Department of Financial Services (NYSDFS), an industry and world leader in cryptocurrency security and regulatory compliance.
HOW DOES RMHC SOUTHERN ARIZONA USE MY GIFT OF BITCOIN OR OTHER CRYPTOCURRENCY?
Through The Giving Block, RMHC Southern Arizona will immediately convert your gift of bitcoin, ether, litecoin, or other cryptocurrency to US Dollars. Unless otherwise designated, funds are then used to support the general operations of the charity.
WHICH CRYPTOCURRENCIES DOES RONALD McDONALD HOUSE CHARITIES OF SOUTHERN ARIZONA ACCEPT?
For the most up-to-date list of crypto coins accepted, visit https://thegivingblock.com/resources/cryptocurrency-we-accept/.
Currently, RMHC of Southern Arizona accepts more than 80 cryptocurrencies, including: Bitcoin (BTC) Ethereum (ETH) Aave (AAVE) Alchemix (ALCX) Amp (AMP) Ankr Network (ANKR) ApeCOIN (APE) API3 (API3) Axie Infinity Shards (AXS) Audius (AUDIO) Balancer (BAL) Bancor Network Token (BNT) BarnBridge (BOND) Basic Attention Token (BAT) Bitcoin Cash (BCH) ChainLink (LINK) Civic (CVC) Compound (COMP) Curve (CRV) Dai (DAI) Decentraland (MANA) DeFI Pulse Index(DPI) Dogecoin (DOGE) Dogelon Mars (ELON) Enjin Coin (ENJ) Ethereum Name Service (ENS) Fantom (FTM) Fetch AI (FET) Filecoin (FIL) Gala (GALA) Gemini Dollar (GUSD) Injective Protocol (INJ) Keep3r (KP3R) Kyber Network (KNC) Lido (LDO) Liquity(LQTY) Liquity USD(LUSD) Litecoin (LTC) Livepeer (LPT) Loopring (LRC) Magic Internet Money (MIM) Maker (MKR) Maple Finance (MPL) Mask Network (MASK) Merit Circle (MC) Mirror Protocol (MIR) Moss Carbon Credit (MCO2) Numeraire (NMR) Orchid (OXT) PAX Gold (PAXG) Polygon-ERC20 (MATIC) Quant (QNT) Radicle Rally(RLY) Raydium(RAY) Radicle (RAD) Ren (REN) Render Token (RNDR) Saber(SBR) Shiba Inu (SHIB) Skale (SKL) Smooth Love Potion (SLP) Solana (SOL) Somnium Space (CUBE) Spell Token (SPELL) Storj (STORJ) SushiSwap (SUSHI) Synthetix (SNX) Tezos (XTZ) The Graph (GRT) The Sandbox (SAND) UMA (UMA) Uniswap (UNI) USD Coin (USDC) Wrapped Centrifuge (wCFG) Yearn.Finance (YFI) Zcash (ZEC) 0x (ZRX) 1inch (1INCH)
What is The Giving Block's refund policy?
All cryptocurrency donations made via The Giving Block are nonrefundable, so in the case of an error, please contact the RMHC Southern Arizona directly.
Please note that RMHC Southern Arizona will not be able to return cryptocurrencies directly, as donations are immediatley converted to US Dollars, and RMHC Southern Arizona does not hold cryptocurrency.
The Giving Block does not, has not, and will never offer any form of cryptocurrency airdrop, goods or services in return for a donation.