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How to anonymously donate cryptocurrency to charities which only support traditional online payments platform?

Personal Finance & Money Asked by user105710 on February 16, 2021

A lot of charities that I want to help support only traditional online payments system, such as GoFundMe, GoGetFunding, JustGiving, Patreon, Paypal, Payroll Giving, Stripe, …

Is there a way to anonymously donate cryptocurrency to them? Something like a payment gateway that would donate on behalf of me after I send them cryptocurrency…

Me -> Gateway -> Traditional payments platform -> Charity

In cryptocurrency, we can send XMR to https://xmr.to/nojs/ and ask it to send equivalent BTC to the desired address.

2 Answers

You have to talk to the charity or choose a different charity.

Look at the charities that are involved with The Giving Block which is an organization that helps charities modernize specifically to help to accept cryptocurrency and digital assets. At a future time there may be different kinds of lists, but a list is not necessary.

Other charities that don't advertise their acceptance of crypto may be used to accepting esoteric and illiquid non-cash assets, and liquid non-cash assets, so you have to ask.

But every year the field of who accepts what and how gets larger.

edit: If this question gets closed I will vote to reopen this question and I encourage others to do so as well. There are applicable answers to this question. I have voted to reopen and the reasons for closing this question were wrong.

Correct answer by CQM on February 16, 2021

To donate cryptocurrency directly to a charity, they'd need to have the capability of holding that cryptocurrency. Probably most charity organizations do not.

I assume the reason you'd like to do this is because you have crypto that has appreciated in value and you'd like to donate it in-kind to avoid capital gains taxes that'd be incurred by selling the cryptocurrency and donating the proceeds. If that's the case, probably your best bet is to set up a donor-advised fund. These are like brokerage accounts that you control but funds can only be used for charitable giving. Contributing to a donor advised fund is tax deductible and you can contribute assets in-kind to avoid capital gains. I'm not totally sure which donor advised funds support cryptocurrency, but a quick internet search suggests that Fidelity Charitable may. If your charity doesn't support holding cryptocurrency, you can sell the asset within the donor advised fund tax-free and donate the proceeds.

The one catch is that donor advised funds typically have minimum balances to open and maintain, so if you have just a small amount of appreciated cryptocurrency, this approach may not work for you.

Answered by Daniel on February 16, 2021

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