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Donate Cryptocurrency

Safely donate Bitcoin, Ethereum and other cryptocurrencies to help us continue to improve the Greater Nashville area. Together we can create a community where every person has an equal chance at a bright future.

Frequently Asked Questions about Cryptocurrency …

What is cryptocurrency?

Cryptocurrency, also known as Virtual Currency or “Crypto,” is a digital asset originally designed to function as an alternative to sovereign fiat currency (U.S. dollars, for example) whereby transactions between two parties are verified through a public, distributed ledger, also known as a blockchain. Most people think of Bitcoin or Ether when they hear “crypto.” While Bitcoin is the original cryptocurrency and most widely followed, many cryptocurrencies are currently available.

What is Engiven?

The Engiven platform is a third-party vendor that provides donation software technology that enables our Finance team to safely and securely receive cryptocurrency donations and then convert those donations into usable fiat currency such as U.S. dollars. Learn more about Engiven here.

What's the advantage of donating cryptocurrency?

Donating cryptocurrency to United Way of Middle Tennessee (dba United Way of Greater Nashville) provides several unique advantages. It’s a convenient and secure way to support our mission. Your crypto donation can be more tax-efficient compared to traditional donations. Since the IRS considers cryptocurrency to be a noncash asset, a direct charitable donation is a non-taxable event. You avoid paying the capital gains tax you would incur if you sold your cryptocurrency for more than you bought it. Avoiding the capital gains tax through a direct donation also means that your gift to United Way is maximized for our community.

Are cryptocurreny donations safe and secure?

Security is a top priority at Engiven. The Engiven platform provides safeguards they believe are needed to ensure that each transaction is secure. By using the Engiven platform, United Way is required to undergo a simple but effective Know Your Customer (KYC) and Anti-Money Laundering (AML) screening, which provides a high level of background security to ensure the parties are properly screened.

Engiven uses advanced encryption protocols to protect your data and transaction details. Additionally, all cryptocurrency transactions on the platform are recorded on the blockchain, ensuring transparency and traceability.

As with any cryptocurrency transaction, when transferring your tokens to the United Way of Middle Tennessee wallet to make a donation, do not expose or share your wallet’s private keys at any time. Your private keys are critical to maintaining the security of your cryptocurrency assets. For added security, consider using a hardware wallet to store your private keys and enable two-factor authentication (2FA) on your accounts.

How are crypto donations taxed?

Your donation is tax-deductible and will be equal to the fair market value of the donated cryptocurrency. For U.S. tax purposes, transactions using virtual currency must be reported in U.S. dollars. Therefore, taxpayers will be required to determine the fair market value of the virtual currency in U.S. dollars as of the date of donation. If a virtual currency is listed on an exchange and the exchange rate is established by market supply and demand, the fair market value of the virtual currency is determined by converting the virtual currency into U.S. dollars (or into another real currency which in turn can be converted into U.S. dollars) at the exchange rate, in a reasonable manner that is consistently applied. Donors who give cryptocurrency donations will receive an electronic donation receipt (through the Engiven donation platform) in U.S. dollars with comprehensive details about each transaction, such as the type and number of coins donated, the date and time of the donation, and the supported United Way fund.

How will you use my crypto donations donation?

Engiven immediately exchanges your donated cryptocurrency for U.S. dollars at the current exchange rate. Then the proceeds are deposited into United Way’s bank account. We will not hold any donated cryptocurrency for a potential rise in value.