Use These Coins to Donate Crypto
Why should crypto users donate in crypto?
Choosing to donate your cryptocurrency means you can help save money on taxes while benefiting the causes that matter to you. Learn more about the tax benefits of crypto donations.
Who is Classy?
Classy is a B Corp Certified Public Benefit Corporation and giving platform that enables nonprofits to connect supporters with the causes they care about. Based in San Diego, CA and trusted by thousands of nonprofits, Classy’s platform provides the formats and flexibility to activate donors when and how they need to by creating more relevant connections to their causes. Since 2011, Classy has helped nonprofits raise over $3 billion on its platform. For more information, visit www.classy.org.
Who is The San Diego Foundation?
The San Diego Foundation (“TSDF”) inspires enduring philanthropy and enables community solutions to improve quality of life in the San Diego area. Their strategic priorities include advancing racial and social justice, fostering equity of opportunity, building resilient communities, and delivering world-class philanthropy to realize our vision of just, equitable, and resilient communities. For more than 46 years, TSDF and its donors have granted more than $1.3 billion to support nonprofit organizations strengthening the community. Learn more at SDFoundation.org.
What is the benefit to donating crypto instead of fiat?
By donating crypto directly, you can receive a higher tax benefit and provide a larger donation to a cause you care about. By donating via cryptocurrency to the The San Diego Foundation (“TSDF”) via the Crypto Giving Fund, you avoid paying capital gains tax before you make the donation. Note: This is NOT formal tax advice. We recommend speaking with your tax advisor if you have any questions or concerns.
How is donating crypto different from donating fiat?
The IRS recognizes a crypto donation as property (very similar to donating stock). The receipt will show the amount of crypto coin that was donated and the estimated value of the donation, which will be the average of the daily high and the daily low for your donation.
How does it work? Where does the cryptocurrency go?
TSDF uses Coinbase Commerce as its platform to accept and process cryptocurrency. This helps nonprofits accept cryptocurrency donations in a fully decentralized way. When a donor wants to make a donation, instructions will be displayed on how to send funds directly to TSDF, and monitor the blockchain for the transaction. After a valid donation is detected, TSDF will be notified so they can take any necessary actions. All payments are facilitated by Coinbase Commerce and are fully decentralized and peer-to-peer. This means that the cryptocurrency goes directly from the donor’s wallet to TSDF’s wallet and is only accessible to TSDF. At no point in this flow does anyone except TSDF, including Coinbase Commerce and Classy, Inc. (“Classy”), have access to these funds.
To whom am I donating?
You are donating to TSDF, a California nonprofit public benefit corporation described in Section 501(c)(3) of the Internal Revenue Code of 1986 (Federal Tax ID: 95-2942582) TSDF provides a Donor Advised Fund (“DAF”) and will take direction to send the donation to the organizations listed in the cause category that you have chosen.
What is a Donor Advised Fund (“DAF”)?
A DAF account is a charitable giving vehicle administered by a sponsoring organization (in this case, TSDF) and is a tax-exempt organization under 501(c)(3) of the Internal Revenue Code. Contributions to a DAF account are irrevocable charitable donations to the DAF sponsor, and as a result, donors are generally eligible to take an immediate tax deduction for the calendar year when the contribution is made.
The donor serves as an advisor and recommends donations to qualifying charities. TSDF will verify that the recommended donation and donation recipient meet all necessary qualifications for approval. Once approved, the donation amount minus processing fees will be sent to the intended nonprofit. TSDF retains ultimate authority and control over the DAF and may refuse a donor’s recommendations for any reason. TSDF will not grant funds directly to individuals, supporting organizations, or non-operating private foundations.
Who will send me my tax receipt?
TSDF will send you your receipt.
When and how will the nonprofit receive payment?
All grants will be made by TSDF within 30 days of the receipt of the applicable nonprofit.
How does TSDF know where to send my donation?
You must indicate the nonprofit you would like to give. You must indicate the nonprofit you would like to give to in the open text box near the top of this page. This is a critical step to ensure TSDF can match your donation with its intended recipient.
What happens if the charity selected cannot be reached or does not accept my donation?
This doesn’t happen often, but if it does, Classy will reach out to the donor using the email address given at the crypto checkout to get a second charity selection. If the donor is unable to be reached within 7 days of outreach or the second charity selection can not be accommodated, Classy will recommend TSDF that the donation be allocated to one of Classy’s Crypto Giving Funds.
What is the minimum donation amount?
The minimum donation amount is the cryptocurrency equivalent of $5,000 USD. Our main focus with this fund is to help major donors support nonprofits they care about.
Which crypto currencies do you accept donations in?
Currently, Coinbase Commerce supports Bitcoin, Ethereum, and USD Coin.
Can I get a refund?
Not typically. Donations are final, irrevocable, and-nonrefundable, except in exceptional circumstances. One circumstance in which a refund might be granted is when the donation was not authorized by the donor (e.g., a fraudulent transaction). If you believe such a circumstance exists, please contact [email protected]
What fees are deducted from my donation?
There are costs associated with processing the transactions imposed by Classy, TSDF, and Coinbase Commerce. The total fees range from approximately 3% to 6% of the aggregate value of the transaction and will be deducted from the donation before it is granted to the charity. There is also a $3 per receipt fee that is charged. The charities have opted in to participate in the Crypto Giving Fund and have agreed to all associated fees.
Where is my donation held prior to being distributed to the organizations listed in the cause category?
In an investment portfolio held in a TSDF.
What happens to my personal information?
Can I make an anonymous donation or a donation in the name of someone else?
Donors will be required to enter a first name, last name, and email address to donate the cryptocurrency.