This is post is taken from the Frequently Asked Questions.

Primary reason for donating bitcoin is that it is a better form of money. By maintaining and growing in purchasing power, it is the best way to support the missions of the church or any charity.

Also, since it has grown so much in value already over the years, donating a highly appreciated asset is one way to reduce federal taxes and be able to direct more of that money to a charity that you support.

Let’s say you purchased $5,000 worth of bitcoin and it is now worth $55,000.

Option 1: You sell the bitcoin holding and pay a 20% capital gains tax on the proceeds, which would total $10,000. You could then donate the post-tax cash (and claim a tax-deduction for the same amount) of $45,000.

Option 2: You donate the entire amount to a nonprofit, pay $0 in capital gains taxes, and the full $55,000 goes to the charity. The donor could then claim a federal income tax deduction of the full $55,000.

Yes, bitcoin donations are fully deductible from federal taxes.