Cryptocurrency Gifts

Help CelloBello Provide Access to High Quality Music Education and a Global Cello Community by Donating Cryptocurrency

Charitable giving in the form of cryptocurrency gifts doubled in 2020, and it is expected to grow significantly this year.

If you have owned cryptocurrency, you know how much it can increase in value in short periods of time. If your investment in crypto has appreciated in value, you will have to recognize a capital gain on the sale. But if you decide to donate that crypto, you will get the double benefit of receiving a charitable contribution deduction while also avoiding capital gains.

In addition to your tax benefits, your cryptocurrency gifts will immediately be converted into U.S. dollars and directly support CelloBello’s programs. Our partnership with Engiven allows you to easily donate Bitcoin, Ethereum, Dogecoin or any one of 36 others types of cryptocurrency tokens.

Donors who reach one of our Giving Levels will receive website acknowledgement, and will receive special invitations to future CelloBello events. Our highest giving levels come with special perks: please see below! Note that giving levels are re-evaluated every calendar year, and only apply to gifts accumulated within the calendar year.

 

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.

 

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 CelloBello Inc will receive an electronic donation receipt (through the Engiven donation platform) in US 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. By using the Engiven platform, the nonprofit is 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 the parties are properly screened. As with any cryptocurrency transaction, when transferring your tokens to CelloBello Inc.’s wallet to make a donation, do not expose or share your wallet’s private keys at any time.