Yes, your nonprofit can legally accept cryptocurrency donations. The IRS classifies cryptocurrency as property, not currency, which means 501(c)(3) organizations can receive Bitcoin, Ethereum, and other digital assets the same way they accept stock or real estate. Roughly 65 million Americans now own cryptocurrency, and major charities from the American Red Cross to No Kid … Read more
When you donate appreciated stock to a qualified charity, you skip the capital gains tax on the growth, claim an income tax deduction for the full fair market value, and the charity keeps every dollar from the eventual sale. I have seen clients give 20% more to the causes they care about using this exact … Read more
Yes, you can donate stock directly to a charity, and doing so often creates a larger gift than donating cash. When you transfer appreciated stock straight to a qualified 501(c)(3) organization, you skip the capital gains tax bill you would owe if you sold the shares first, and you still get a charitable deduction for … Read more
How is a donated vehicle value determined? The short answer: the IRS treats it as the car’s fair market value (FMV) at the time of donation, which you usually estimate using a used-car guide like Kelley Blue Book. From there, the exact deduction you can claim depends on whether the charity sells the car, the … Read more
Yes, you can donate a car that does not run to most charitable organizations. The vast majority of car donation programs accept non-running vehicles as long as the car has four inflated tires, is reasonably whole, and you can provide a clear title. Some charities will even take cars in worse condition if the vehicle … Read more
When you donate a car to charity, the vehicle does not simply vanish. It enters a sorting and disposition process that usually takes a few weeks, and the path it takes depends on its condition, the charity’s mission, and what buyers will pay at auction. In this guide, I will walk you through the full … Read more
If you donated a car, truck, boat, or airplane to charity, the tax form you need depends on the vehicle’s value and whether you plan to itemize your return. The short answer: Form 1098-C is the primary tax form for donating a car, but you will also likely need Form 8283 and Schedule A. I … Read more
Yes, businesses can deduct donated inventory as a charitable contribution under federal tax law. The Internal Revenue Service treats inventory as “ordinary income property,” which means your deduction depends heavily on your business structure. C corporations can claim a deduction up to fair market value (with conditions), while pass-through entities like S corporations, partnerships, and … Read more
When a local business drops off $5,000 worth of canned food at your food pantry, or an office supply company donates laptops worth $8,000, those contributions are real financial activity. Learning how nonprofits record donated goods properly keeps your books accurate, your Form 990 compliant, and your auditors happy. In-kind donations, as they are formally … Read more
Every year, nonprofits across the country receive billions of dollars in non-cash gifts, from donated office furniture to pro bono legal services. Yet many organizations struggle with one fundamental question: how do you put a dollar amount on something that arrived without a price tag? Nonprofits should value in-kind donations at fair market value (FMV), … Read more