Be Charitable With Cryptocurrency

Bitcoin isn’t for everyone. But if you invested in Bitcoin or other virtual currency prior to Jan. 1, 2021, it’s likely worth a lot more than you paid for it.

Despite recent market volatility, Bitcoin is still one of the best-performing assets over the past five to 10 years. If you own some, you may have a very low cost basis and you should evaluate the tax implications before cashing in.

One impactful option that can save you on taxes: Using cryptocurrency to support our mission.

What Are My Tax Benefits?

Your cryptocurrency gift to Iowa State University qualifies for an income tax deduction for its fair market value, up to 30% of your adjusted gross income (AGI) with a five-year carryover. If you have held your cryptocurrency for more than a year, you also avoid the capital gains tax you would have paid if you sold it.

How It Works

Step 1: Confirm with the nonprofit or your donor advised fund. Check with your desired destination that you are able to transfer cryptocurrency to your account. 

Step 2: Transfer your cryptocurrency. Work with the charitable organization or your donor advised fund provider to make the transfer via their online wallet tool.

This Gift Is Right for You if:

  • You would like to receive a federal income tax deduction in the year you make your gift.
  • You would like to avoid capital gains tax.
  • You would like to make an impact on our mission.

Questions?

If you are interested in giving Bitcoin or other cryptocurrency to Iowa State University, please contact the office of gift planning at 800.621.8515 or giftplanning@foundation.iastate.edu. We are happy to walk you through the process.