1. What is cryptocurrency?
Cryptocurrency is a type of virtual currency that uses cryptography to secure transactions that are digitally recorded on a distributed ledger, such as a blockchain.
2. How do I make a Cryptocurrency donation to Oxfam?
Go to oxfamamerica.org/crypto
- Under “Select Your Crypto” select the type of crypto to donate from the dropdown.
- Enter your donation amount in the crypto of your choice or USD.
- Fill out your name and address (optional) and enter an email address where you would like to receive a tax receipt.
- A dynamic wallet address will be generated for your donation which is linked directly to the Oxfam’s wallet. The Giving Block uses a dynamic wallet addresses to protect your privacy. Use this to send the cryptocurrency from your wallet or exchange account to Oxfam.
3. What is The Giving Block?
Oxfam uses The Giving Block platform in order to accept cryptocurrency donations. The Giving Block was founded in 2018 after seeing hundreds of millions of dollars in crypto being donated to the few nonprofits that were equipped to accept those donations. Their mission is to ensure that nonprofits from all sectors are equipped to accept cryptocurrencies and are connected with those in the crypto community who wish to donate. They achieve this with their founders’ wealth of experience in cryptocurrency as well as nonprofit fundraising and operations.
The Giving Block FAQs
4. Is my cryptocurrency donation tax deductible?
Yes, your cryptocurrency donation is tax deductible! The IRS classifies cryptocurrency donations as property, meaning they are not subject to capital gains tax and are tax-deductible. Cryptocurrency donations to 501c3 charities receive the same tax treatment as stocks.
5. How will I get my tax receipt?
You will receive a tax receipt via email, provided you enter an email address. This will arrive as soon as your donation has received the minimum number of confirmations on the blockchain, so keep a lookout for it. If you can’t see it, double check your spam or junk mail, and contact The Giving Block if you need it resent. Be sure to file away your tax receipt in a safe location that is accessible when filing your tax return and use it for proof of your donation. Please note if you do not provide an email address, you will not receive a tax receipt.
6. How is cryptocurrency treated for Federal income tax purposes?
Virtual or cryptocurrency is treated as property and general tax principles applicable to property transactions apply to transactions using virtual currency. For more information on the tax treatment and charitable gift deductibility of virtual currency, please consult with your tax advisor.
You may want to work with a qualified appraiser to determine the fair market value of the gift at the time of donation for tax-deduction purposes.
Charitable Solutions, LLC, or Friedman LLC are two firm that offer cryptocurrency appraisal services or ask your trusted CPA adviser for references.
Additional Giving Block tax resources here.
7. Why did Oxfam America decide to accept cryptocurrencies?
We have made this decision as we try to serve our donors best in line with their donation preferences and to make it easy for people to donate. With the rising popularity of crypto donations, we consider this as an additional service to our donors. Cryptocurrency has been added as a payment channel in many online retail stores in the recent past, as well as in many non-profits.
8. Doesn’t cryptocurrency have a hugely negative impact on the environment?
While blockchain technology holds transformative potential, it also comes with challenges. The process of issuing many forms of cryptocurrency such as Bitcoin is currently energy intensive and has rightfully come under scrutiny for its environmental impact.
This is an evolving issue and one that it will be important for us to monitor and adapt accordingly. Given that the actual transactions, including donations, are not particularly energy intensive, we have decided to make this option available for donors who would like to donate their cryptocurrency.
9. Is Oxfam America getting involved in Cryptocurrencies?
It is important to note that Oxfam America will not hold or deal in cryptocurrency. A crypto donation made by a donor to our partner, The Giving Block will be immediately converted into US Dollars. Oxfam America then receives the converted dollar amount.
Regarding the use of Blockchain technology in our projects, Oxfam is using Blockchain technology in its projects. See this article about the Unblocked Cash pilot and its scaling up.
For any other questions, please reach out to us at [email protected] or 800/776-9326 (select option 2).
