Virtual currencies and other digital assets are more than a trend, and donors increasingly are seeking out charitable organizations to accept digital assets as charitable donations.
The tax treatment of digital assets is new and evolving, and it can be complicated to understand. Four frequently asked questions (FAQs) on the IRS website address charitable donations of virtual currency. However, these FAQs do not go nearly far enough to address the significant questions that donors and donees have. Following are five questions charitable organizations should consider before accepting donations of digital assets.