Be Charitable With Cryptocurrency

If you own Bitcoin or another digital currency, chances are it is worth a lot more than what you paid for it. Many investors have a very low-cost basis and should evaluate the tax implications before cashing in.

One impactful option that can save you on taxes: Using cryptocurrency to support our mission.

Your Benefits

Your cryptocurrency gift to the University of Massachusetts Amherst qualifies for an income tax deduction for its fair market value, up to 30% of your adjusted gross income (AGI) with a five-year carryover. If you have held your cryptocurrency for more than a year, you also avoid the capital gains tax you would have paid if you sold it.

How It Works

Step 1: Ask if the charitable organization accepts gifts of cryptocurrency (ours does). Alternatively, if you have a donor advised fund, confirm with them if you are able to transfer cryptocurrency to your account. Then you will be able to recommend a grant to charitable organizations.

Step 2: Transfer your cryptocurrency. Work with the charitable organization or your donor advised fund provider to make the transfer via their online wallet tool.

This gift is right for you if:

  • You would like to receive a federal income tax deduction in the year you make your gift.
  • You would like to avoid capital gains tax.
  • You would like to make an impact on our mission.

Questions?

If you are interested in giving Bitcoin or other cryptocurrency to the University of Massachusetts Amherst, please contact Joseph K. Jayne ’21 MPP at 413-577-1418 or gift.planning@umass.edu. We are happy to walk you through the process.