Plain English
Donating long-term-held appreciated crypto directly to a qualified 501(c)(3) charity gives you a charitable deduction equal to fair market value while also avoiding capital gain on the appreciation. It is one of the most tax-efficient charitable giving structures available to HNW principals.
How it actually works
For non-cash gifts over $5K, you must obtain a qualified appraisal (Form 8283) — a specialized appraiser, not just an exchange price. Donor-advised funds (DAFs) at Fidelity Charitable, Schwab Charitable, and crypto-native DAFs (Endaoment) accept direct crypto donations and convert internally. The deduction is capped at 30% of AGI for capital-gain property to public charities (20% to private foundations).
What it means for you
For HNW principals with significant unrealized crypto gains and ongoing charitable intent, this is one of the single highest-ROI tax moves. A $1M donation of fully appreciated BTC produces ~$1M deduction PLUS saves ~$200K+ in capital gains that would have been owed on sale. Coordinate with your CPA and the DAF — the appraisal process for in-kind crypto is specialized.
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Educational content only. Not investment, tax, or legal advice.