Are You Prepared to Accept Bitcoin Donations?
Are You Prepared to Accept Bitcoin Donations?
Digital currency can be given to your church without donors paying taxes on gains realized.
Last Reviewed: November 6, 2019

Editor’s Note: In October of 2019, the Internal Revenue Service issued updated guidance regarding the tax treatment of digital currency (“cryptocurrency”) and associated activities. Editorial Advisor Michael Batts reviewed the IRS materials and determined all guidance in this article remains current and accurate.

Digital currency (sometimes called "cryptocurrency") is a big new thing, and lots of people are getting into it. And that makes digital currency very relevant for churches and nonprofit organizations.

But what is it?

Wikipedia defines "cryptocurrency" as a "digital asset designed to work as a medium of exchange that uses cryptography to secure its transactions, to control the creation of additional units, and to verify the transfer of assets." Bitcoin, created in 2009, was the first significant digital currency. Today, there is a growing number of others. Among the few highly recognized and used digital currencies today are Bitcoin, Bitcoin Cash, Ethereum, Litecoin, and Ripple.

Log In For Full Access

Interested in becoming a member? Learn more.

Posted: June 19, 2018

|

Last Reviewed: November 6, 2019
View All
from our store
2020 Church & Clergy Tax Guide

2020 Church & Clergy Tax Guide

Find comprehensive help understanding United States tax laws as they relate to pastors and churches.
Talking to Your Congregation About Money

Talking to Your Congregation About Money

Helpful insights on talking about money and encouraging people to become generous givers.
Charitable Contributions Bulletin Inserts

Charitable Contributions Bulletin Inserts

Help your members give more by answering their charitable giving and tax law questions.
Church Fundraising Campaigns

Church Fundraising Campaigns

Discover tips on raising and borrowing money.

ChurchSalary

ChurchSalary

Let ChurchSalary do the work. Get personalized compensation reports for staff and pastors.