Cryptocurrency, in all of its forms, has been one of the biggest disruptors of the financial world in this century with the market capping out above $1 trillion. Cryptocurrencies like Bitcoin are expected to grow by 30 percent over the next five years, making it an increasingly significant part of the financial landscape for the foreseeable future. While it can be a confusing and complex concept, it’s vital that churches and ministries be ready to receive donations of cryptocurrencies from members and donors. Moreover, donations of cryptocurrency to an Advise & Consult Fund or Increase Fund at the PCA Foundation can maximize tax savings and thereby maximize a donor’s long-term giving.
Bitcoin, Ethereum, Ripple and the like are actually not just a form of currency like simple cash, but are treated as non-cash property by the government and regulated as such for tax purposes. This leads to a number of considerations when it comes to the transfer of ownership, including the need for an appraisal. The IRS has unique guidelines for its treatment of cryptocurrency and thus, the donation of crypto must be managed by an organization that is well equipped to handle such complexities.
The PCA Foundation now has the ability to facilitate cryptocurrency gifts for the benefit of churches. This means your church’s “offering plate” can now include non-cash gifts like Bitcoin. In 2020 alone, the Foundation facilitated over $12 million in charitable crypto donations and is poised to grow this service in 2021.
The PCAF is able to facilitate these complex donations for immediate granting to churches and ministries, and for placement in donor-advised funds. In addition to cryptocurrency, the Foundation is able to facilitate other complex gifts of non-cash assets such as stocks, bonds, real estate, and business equity. Such gifts typically reduce taxes to a much greater extent than cash gifts, enabling donors to give more than they thought possible. Churches are encouraged to promote the Foundation to their members and encourage them to be generous with all types of assets God has entrusted to them. When church members use the PCA Foundation, their local church tends to be one of the primary beneficiaries.
If you need help with a cryptocurrency donation, visit the Foundation’s website, complete the donation inquiry form, and our staff will work with you to complete the donation. The PCA Foundation is committed to helping Christians donate a full range of assets—no matter the size or complexity.