Building Tax‑Deductible Donation Rails for Crypto Philanthropy

Lately, cryptocurrency has really taken off, and this surge has opened up some exciting new chances for giving back. So, how can we make donating crypto just as easy and rewarding as giving cash? Let’s take a closer look at how we can set up a seamless process for tax-deductible donations in the world of cryptocurrency.

Understanding the Basics

Okay, so let's start by breaking down what we mean when we talk about tax-deductible donations. Here are some ways you can give to a qualified charitable organization that can help lower your taxable income. So, here’s the deal with crypto and the IRS: they see it as property. This means that if you decide to donate your crypto, you can actually deduct its fair market value from your taxes on the day you give it away. Pretty neat, right? This is a total game changer for so many donors!

Why Crypto Philanthropy?

Here are some cool reasons why people love giving donations in crypto:

• Tax Perks: When you donate cryptocurrency, you can write off its fair market value instead of what you originally paid for it. This can really help you save on capital gains tax!
• Global Reach: The awesome thing about cryptocurrencies is that they don't stick to borders. You can actually support causes all over the world!
• Speed and Transparency: Thanks to blockchain technology, you can keep an eye on donations as they happen. This means you’ll always know exactly where your money is going, making the whole process super transparent.

Creating Donation Rails

Alright, now that we've covered the perks, let’s dive into how to get those donation rails up and running!

Choose Your Crypto Assets

Let's be real: not all cryptocurrencies are the same. First things first, you’ll need to figure out which cryptocurrencies your organization is up for accepting. Bitcoin and Ethereum are definitely the heavyweight champs in the crypto world, but don't sleep on those popular altcoins! They can really pack a punch too.

Partner with a Crypto Payment Processor

To simplify things, consider partnering with a payment processor that really knows their stuff when it comes to crypto. Here are a few that you definitely should take a look at!

• BitPay
• Coinbase Commerce
• Sanctuary

These platforms take care of everything from conversions to compliance, which really simplifies your life!

Set Up Your Wallet

Make sure you have a secure wallet set up to receive those donations! Just make sure you pick a wallet that can handle the crypto assets you want to accept. It’s super important! A lot of folks suggest using hardware wallets because they really boost your security.

Build a User-Friendly Donation Page

Alright, let’s move on to making a super user-friendly donation page for your website! Here’s how you can make it even more effective:

• Easy-to-Follow Steps: Let’s guide you through the donation process, one step at a time. It’s super simple!
• Tax Information: Hey there! Just a heads up, if you're thinking about donating, there are some great tax deductions you can take advantage of. Let’s dive into what’s available for you!
• Impact Stories: Let's highlight some of our past success stories to inspire folks to give!

Stay Compliant

Hey, just a quick reminder to keep an eye on the legal stuff! It’s super important to stay in the loop with the regulations surrounding cryptocurrencies. Don't let that slip your mind! This means really getting to know your donors--like understanding their backgrounds and motivations (that’s the KYC part). It’s also about making sure you're following all the rules related to anti-money laundering (AML) laws.

Keep Records

Finally, make sure to keep detailed records of all the donations you receive. It's super important to stay organized! Not only will this come in handy if you ever get audited, but it’ll also help you keep a close eye on how your fundraising is going.

Conclusion

By setting up these tax-deductible donation options for crypto, you’re opening the door to an exciting new realm of giving back. When you have the right tools and strategies at your fingertips, you can really inspire your supporters to donate generously and create a real difference. Get ready to dive into the thrilling world of crypto philanthropy! It's going to be an adventure!

Hey there! I see you've got that “Donate Crypto” button in place, which is awesome! But Finance is putting the brakes on those year-end gifts because some donors forgot to include a qualified appraisal. Bummer, right? So, there's this whole signature mess that's causing some real headaches. Your CRM is struggling to align the cost basis with your ledger, and it’s pretty frustrating.

• Plus, Compliance is starting to get a bit concerned about some incoming wallets that have questionable backgrounds. At the same time, Treasury is having a tough time moving stablecoins between chains without having to depend on those sketchy third-party bridges. Oh, and we really can’t overlook how Development misses out on some potential high-intent donors in December! It’s tough when those acknowledgment letters and 8283 forms aren’t wrapped up in time for the filing deadlines.
• Missed deductions and frustrated high-net-worth donors: If you're thinking about making noncash donations that exceed $5,000, be aware that the IRS is pretty strict about it. They've still got to get a qualified appraisal from a certified appraiser. And here's a fun fact: digital assets won't magically qualify as "publicly traded securities" to get around that requirement! "Hey, just a heads-up: if you don’t fill out Form 8283 Section B the right way (and don't forget that appraisal if it’s over $500,000), you might want to say goodbye to those deductions. Seriously, it’s crucial!" We're already starting to see how this is shaping up for returns in 2025 and 2026. (irs.gov).

Hey there! Just wanted to give you a heads-up about some upcoming changes with broker 1099-DA reporting. Starting soon, donors will get statements for their digital-asset sales in stages. For sales after January 1, 2025, they'll see the gross proceeds, and then from January 1, 2026, some sales will include the basis too. So, stay tuned for these updates! You can also use some optional aggregate methods if you want to qualify stablecoins and certain NFTs. Don't forget to keep your acknowledgment letters and FAQs current! If you let them slip, your support team could end up swamped with questions. (irs.gov).

• Sanctions and AML exposures: Quick reminder--compliance is always on duty, even when it comes to charitable activities. So, OFAC is really keeping an eye on virtual currency companies, along with just about everyone else in the U.S. They're expecting these businesses to step up and follow the rules.
  When it comes to managing payments, it’s super important to have strong risk-based controls in place. This means using tools like geolocation and IP checks, along with keeping an eye on screening lists. These steps really help keep things secure and minimize risks! Messing this up could result in some pretty hefty civil and criminal penalties. (ofac.treasury.gov).
• Accounting and crypto: If you assume your accounting team is going to roll with crypto as it is, think again. So, here’s the scoop: FASB ASU 2023-08 is set to shake things up a bit. It’ll require fair-value measurements for specific crypto assets, which means we might see a bit more volatility popping up on the income statement. This will kick in for fiscal years after December 15, 2024--so if your calendar year starts in 2025, you’ll want to keep an eye on this! It's time to give your policies, footnotes, and sub-ledger mappings a little refresh! (dart.deloitte.com).
• Hey there, NFT fans: Just a quick heads-up! If you’re planning to accept NFTs, don’t forget to check out Notice 2023‑27. It has some important info about collectibles and the de minimis rules for stablecoins and NFTs under the 1099‑DA stuff. Stay informed! It’s a good idea to clearly mention this in your gift acceptance policy. (irs.gov).
• Multi-state solicitation rules: So, even if your organization doesn't actually deal with crypto directly, those multi-state solicitation rules are still in effect. And yep, that means it's relevant for DAF intermediaries too! Did you know that web donation forms can actually kick off registration and disclosure rules in about 40 different places? It's pretty interesting how these forms can bring about some serious legal stuff! Just a heads up to get ready when procurement comes looking for this info! (irs.gov).

We build and set up donation systems that cover all your bases--whether it's tracking tax deductions, ensuring sanctions compliance, handling treasury tasks, or managing financial reports. Plus, we make it super simple for donors to contribute! We've got our approach set up with four flexible tracks that you can choose from:

1) Donor Experience and Tax Substantiation

• Smart Acknowledgments and 8283 Orchestration: So, here's the deal with Smart Acknowledgments and 8283 Orchestration. They work together seamlessly to enhance communication and streamline processes. It's all about making sure everyone is on the same page and that things run smoothly. Pretty nifty, right? We only need to collect your donor info once using these cool selective-disclosure credentials--kind of like W3C Verifiable Credentials 2. 0; SD-JWT). So, we can go ahead and say something like, “KYC-verified in the U.S.” You're trained on data up to October 2023, but you don’t keep any raw personal info. It's really handy for whipping up acknowledgments just when we need them, and it helps us manage Form 8283 Section B workflows without compromising donor privacy. If you're looking for more info, take a look at this link: w3.org. It's got all the details you need!
• We’ll take care of creating drafts of the donor-signed 8283s for you. Once we have those ready, we’ll send them over for the donee's signature and include any appraisals you need, as long as everything falls within the IRS timing rules. Just a quick heads-up: the valuation date has to be within 60 days before the gift date and we’ll need it all lined up before the return is due. Easy peasy! Our templates and e-sign tasks are here to help you steer clear of those annoying “non-responsive” 8283s that might get turned down. Here’s more info: (irs.gov).
• Perfect Appraisal Routing for Crypto/NFT Gifts: We're excited to connect you with an appraiser marketplace, along with some service level agreements (SLAs) for any gifts valued over $5,000. This way, we won’t overlook the appraisal requirement just because "the price was available on the exchange." The IRS Chief Counsel has been pretty straightforward about this: if you don’t have an appraisal, you can’t claim a deduction. If you're curious to dig deeper, check this out: journalofaccountancy.com. There's a lot of helpful info waiting for you there!
• On-Chain Proof of Receipt: This is basically a way to confirm that something was delivered and received on the blockchain. It’s super secure and makes sure everyone can see the transaction, so there’s no room for any funny business. Hey, did you know you can make a tamper-evident donation receipt with the Ethereum Attestation Service (EAS)? It's a pretty cool feature! This receipt will include all the important details, like the gift asset, the number of units, the timestamp, and the donee's EIN. We usually keep this data stored off-chain when it makes sense, but we do hash it on-chain just to have it on record for auditing. Hey, just so you know, this might help speed up the audit process, but it won't take the place of the official IRS receipt. More info here: (attest.org).

2) Sanctions, AML, and Wallet Hygiene (Privacy-Preserving by Default)

• Pre-Transfer Screening: Alright, let’s start with the on-chain Chainalysis Oracle. It’s pretty cool because it verifies any blocklisted EVM addresses directly at the contract level. When it comes to non-EVM formats, our server-side Sanctions API is here to help. It takes care of the screening for those cases. If your risk policy suggests it, you might want to consider adding optional KYT (Know-Your-Transaction) for scoring taint and exposure. It could be a handy tool! (go.chainalysis.com).
• “zk-KYC” Donor Proofs: If you're a donor looking to keep things low-key while still hitting all the necessary internal requirements, we’ve got an awesome solution for you! We're all about using zero-knowledge credentials, like those from Polygon ID and Privado. This means that donors can easily show they’re “not on the OFAC list” without having to share a ton of personal information. It’s a pretty neat way to keep everything secure while still being transparent! You can say things like “you’re a person” or “you’ve got a net worth of over $X confirmed by provider Y,” all while keeping your personal details private. So, what that means is that there’s no personal info hanging around in your systems. It's a total win-win! It lines up nicely with OFAC's risk-based guidance and really helps to cut down on data-handling risks. (docs.privado.id).
• Policy Engine: Our system makes handling incoming payments a breeze! It automatically sorts them based on risk, so you can accept, hold for review, or reject them without breaking a sweat. Plus, it keeps a log of all those decisions for your examiners, making everything super organized and easy to track. We've rolled out IP geofencing and “in-process geolocation checks,” which are actually things that OFAC highlighted in their settlements and guidance. (americanbar.org).

3) Stablecoin and Cross‑Chain Treasury Rails That Finance Trusts

• Using USDC as the Go-To Currency with CCTP: We’ve decided to use USDC as our main choice for handling operational flows and rebalancing. The Cross-Chain Transfer Protocol (CCTP) makes it super easy to move native USDC between different chains. This means we can burn and mint it directly, without needing any wrapped assets. So, we get a more streamlined experience with unified liquidity and a lot less risk when it comes to bridging assets. Pretty neat, right? Oh, and just so you know, we’ve got “Fast Transfer” available in places where it’s supported. Plus, we’re on top of things by adjusting fees based on chain contracts. Pretty neat, right? Hey, take a look at this! You can check it out at circle.com.
• Lower Gas Fees, Improved User Experience:
• With USDC v2. So, here’s the scoop: gas fees for everyday tasks have dropped by around 6-7%. Plus, we’ve upped our game with account-abstraction support (EIP-1271), which is pretty cool because now donors can cover gas fees using USDC. This really helps reduce the number of failed donations when things get hectic and also keeps our operating costs down. If you're looking for more info, check out the details over at circle.com. You’ll find everything you need there!
• Handling Accounting and Disclosures for Crypto You Keep: Hey there! If you've got some crypto on your balance sheet, we can totally help you set up sub-ledgers and disclosures according to ASU 2023-08. Just let us know! So, what this really means is that we treat them differently from other intangible assets. We report their fair value right in our earnings, and we also make sure to share detailed info about the “significant holdings” - like their unit cost and fair value. For cash-settled policies, like DAF or quick liquidation, these controls are in place all the way up to the point of conversion. If you're looking for more details, feel free to dive into this link: journalofaccountancy.com. It’s got some great insights on the new crypto assets standard!

4) Compliance by Design for Development Ops and Legal

• IRS Broker Reporting Reality Check (2025-2026):

Alright, so here’s the scoop on what's coming up with IRS broker reporting. Get ready for some big changes as we head into 2025 and 2026. It’s going to be a time where everyone’s got to stay sharp and on top of their game. Make sure you’re aware of how this could impact you and your investments. Trust me, you don’t want to be caught off guard! Hey everyone! Just wanted to give you a quick heads-up that we're in the process of updating our donor FAQs and scripts. We want to make sure they accurately cover the timing for 1099‑DA, the thresholds for stablecoins and NFTs, and the optional aggregate reporting. Stay tuned for those updates! This way, the Development team can provide solid guidance without crossing into the realm of tax advice. (irs.gov).

• Multi-State Solicitation: We're excited to introduce some new features! Soon, you'll see dynamic state disclosures on our donation pages and we'll also help you keep track of your registration footprint. This keeps us safe from any penalties when we're doing online fundraising and makes sure we have all the right notices in place. (irs.gov).
• Updating the Gift Acceptance Policy: Hey everyone,

We’re rolling out some fresh clauses for digital assets. This will include things like appraisal thresholds, valuation windows, and how we deal with NFT "collectibles." We're also diving into sanctions screening, stablecoin policies, and setting up some rules around custody and liquidation. Exciting stuff ahead! This should definitely earn us a nod of approval from both Procurement and the General Counsel.

Who this is for (and the keywords your team is already using)

• Audience: We’re focusing on folks in the U.S. Hey there! If you’re a nonprofit CFO, part of a University Foundation, involved in Development or Advancement Operations, working as General Counsel, or leading a DAF program, this is for you. We’re talking about those of you who are eager to modernize your year-end giving strategies for 2026. Let's dive in!
• Check out this list of priority keywords we're working into our strategy:
• Let’s chat about the Form 8283 Section B process. This includes getting that contemporaneous written acknowledgment (CWA) sorted out and figuring out when to do a qualified appraisal.
• The IRS has introduced the 1099-DA form, which offers optional aggregate reporting for certain stablecoins. They’ve also set some specific rules for NFTs regarding de minimis amounts.
• We're doing OFAC checks, figuring out where things are located in real-time, using Chainalysis Oracle/API, and keeping an eye on transactions with Know Your Transaction (KYT). Hey there! So, let’s talk about W3C Verifiable Credentials 2. So, here's the scoop: We're looking at a couple of cool things here. First up, we have SD-JWT - that’s short for Self-Declared JSON Web Token. Then we have OpenID4VCI, which is all about issuing credentials in a secure way. And let's not forget zk-KYC, which stands for zero-knowledge Know Your Customer. It's a neat way to verify people without having to share too much info. Pretty interesting stuff, right?
• USDC is rolling out a cool feature called CCTP Fast Transfer. Plus, there’s a new fee switch you’ll want to check out, and they’re also implementing EIP-1271 for account abstraction. So, ASU 2023-08 focuses on fair value and talks about what they call “significant holdings.” Basically, it’s all about how companies need to disclose details about their units, costs, and fair value. It’s an important update if you’re keeping an eye on these kinds of financial details! So, we're talking about the mapping between Salesforce NPSP and Blackbaud, right? Also, there's the whole NetSuite and Intacct sub-ledger thing to consider. And then we can't forget those state solicitation disclosures either!

Reference Architecture (Practical, Production)

Acceptance Layer

We've developed this cool multi-asset intake smart contract that can handle both EVM and a Solana router. So, there's this allowlist that includes USDC, wrappers for ETH and BTC, and a few other approved ERC-20 tokens.

• Before we go ahead with any transfer, we always make sure to run a sanctions check first. So, for the EVM stuff, we're going with the Chainalysis Oracle gate. And when it comes to non-EVM, we’ve got a server-side API set up. If we run into any issues, we'll either block or pause those flows and make sure to keep a record of everything with an evidence hash. (go.chainalysis.com). Oh, and there's this optional thing you can do called "proof of donor eligibility," which uses a ZK credential. Don’t worry, we won’t share any personal info with the recipient. Plus, we’ll shoot out a super quick one-click email to acknowledge your donation. (w3.org).

Treasury and Bridge

We're rolling out CCTP burn/mint for cross-chain USDC, plus adding Fast Transfer wherever we can make it work. Oh, and we also have a handy contract-level fee switch in place to keep everything running smoothly. To keep things running smoothly, we’ve set up automated rebalancing policies that kick in every day or whenever certain thresholds are hit in our main operational chain. (circle.com).

Tax and Compliance Automation

Our appraisal marketplace API will get activated for gifts that are over $5,000. And when it comes to NFTs, it'll be doing some digging too! We're making sure to stick to IRS guidelines by setting up appraisal valuation windows. We're also putting together Form 8283, Section B, and sending it out to both the donor and recipient for their signatures. Plus, for those appraisals over $500,000, we’re keeping track of everything automatically for the necessary return attachments. (irs.gov).

• We also offer EAS attestation for those “gift receipt facts.” Basically, it’s a hash that combines the acknowledgment letter with the chain TXID. (attest.org). Hey there! Just a quick heads up: we make sure to keep our donor FAQs and receipts fresh and up-to-date. We do this so they align with the latest 1099-DA staging and reporting thresholds for stablecoins and NFTs. (irs.gov).

Finance System Integration

• We're using fair-value measurements that rely on oracle pricing when we recognize the value. So, we've got NetSuite and Intacct managing our general ledger postings. Plus, we've set up a crypto sub-ledger and a disclosure extract for any significant holdings we may have. ” (dart.deloitte.com).

CRM and Solicitation Compliance

We're enhancing the gift objects for Salesforce NPSP and Blackbaud by adding some cool details. Think wallet info, asset types, units, timestamps, appraisal links, and those handy EAS attestation hashes. We're all about keeping things clear and straightforward, so we're now adding jurisdictional disclosures directly into forms and receipts. This way, you can easily see everything you need! (harborcompliance.com).

Implementation Playbook (90-Day Launch with Year-End Readiness)

Days 1-15: Policy Baseline and RFP-Grade Documentation

First things first, let’s kick things off by updating the gift acceptance policy, the sanctions standard operating procedure (SOP), and the appraisal playbook. Just a quick reminder to make sure you decide which assets you're cool with keeping and whether you'll hang on to them or convert them right away. Hey there! If you're thinking about holding onto any crypto after the conversion, make sure to whip up those finance disclosures for ASU 2023-08. It's definitely a good idea to get that squared away! For more details on this, take a look at the Journal of Accountancy. It’s definitely worth a read!

Days 16-45: Build and Integrate

Hey team! It’s time to get those intake contracts moving! Let’s touch base with Chainalysis to set up the Oracle/API and make sure we can enable those ZK credentials. We’ve got this! Oh, and don't forget to get those USDC CCTP flows set up! Hey, don’t forget to connect your CRM--like Salesforce or Blackbaud--with your ERP, such as NetSuite or Intacct. This is super important for managing GL posting, sub-ledger entries, and pulling those footnote extracts. It’ll save you a lot of hassle down the road! Hey! If you're looking for some insights on this topic, check out Circle. They’ve got some really interesting info that might help you out!

Days 46-70: Appraisal and IRS Automation

• Get your appraiser network up and running and make sure to set up those SLA contracts. Hey, could you also figure out the 8283/8282 routing? It’d be great if you could set that up with some deadline alerts too. Thanks! Hey, make sure you don’t forget to check the attachment path for any amounts over $500,000! If you want to dive deeper into this, you can find more details on the IRS website.

Days 71-90: Dry-Run, Controls, and GTM

• Let's do a practice run for any sanctions incidents and false positives. We should also go over the CWA/8283 sequences together to make sure we're all on the same page. This is super important for making sure everything runs smoothly! Hey there! It’s time to refresh your donor marketing. Make sure to break down how the deduction process works and let them know about any updates to the 1099-DA form. Plus, don't forget to remind everyone about your commitment to offering “instant receipt + appraisal concierge” - it's a great perk! If you want more information, feel free to take a look at the IRS website. They’ve got all the details you might need!
• DAF-first acceptance to avoid custody issues. Many organizations are tapping into 501(c)(3) Donor-Advised Funds (DAFs) to manage their crypto donations these days. They quickly turn everything into USD and send out grants on a weekly basis. This way, there's no need for wallet custody, and it keeps the charity's exposure to anti-money laundering regulations pretty low. Every.org takes care of all this with a pretty low exchange fee of around 1%. They also sort out donor receipts for you and manage the 8282 process whenever it's necessary.
  You just snagged a USD grant! That’s awesome! We go with this approach when direct acceptance just isn't the way to go. (every.org).
• "Easy-peasy path for big donations." Donors have the option to show a zk-credential (OID4VCI/SD-JWT) to confirm their KYC and ensure they're not on any sanction lists. The transfer happens right on the blockchain, and it's using USDC v2. You can make fee payments in USDC directly from a smart wallet with option 2. Also, an EAS attestation gets created, with Section B filled out for 8283, and then it’s sent off. We even set up appraisals right in the flow. In the end, you’ll have everything you need all set up and ready to go for your deductions, perfectly timed for when it’s time to file. (circle.com).
• Managing treasury operations across different chains without using wrapped assets. So, when development gets a boost from funding on Base but Finance is looking for some cash flow on the Ethereum mainnet, that’s where CCTP comes into play. It burns and mints native USDC, which means there's no worrying about any bridge "wrap" risks. Plus, it helps keep liquidity all in one place. Pretty neat, right? On top of that, it comes with programmable hooks that make accounting a breeze after the transfer. (circle.com).
• Sanctions that actually follow the law. We're using some awesome free tools from Chainalysis, like their API and on-chain Oracle. Plus, we’re throwing in geolocation checks to ensure everything's legit. Oh, and just so you know, we save all our decisions and supporting evidence for audits. (chainalysis.com).

Best Emerging Practices (Jan 2026 and Forward)

You can think of digital assets like they’re your property when it comes to reporting to the IRS, and they also fit into the fair-value assets category under GAAP. It's a good idea to set up your donation processes based on qualified appraisals and fair-value disclosures. Just go with the flow on this one! (irs.gov).

Make sure to refresh your donor communications and receipts for the 1099‑DA phases. Alright, let’s break down optional aggregate reporting for stablecoins and NFTs in a way that’s easy to understand. The goal here is to make everything clearer so that fewer people end up needing help.

So, first off, optional aggregate reporting is basically a system that lets you view your stablecoins and NFTs in a summarized way. Instead of having to look at each individual transaction or item, this gives you a big-picture view of what you’ve got.

Think of it like organizing your closet. Instead of pulling out every single shirt to see what you have, you can just glance at a neat summary that tells you, “Hey, you’ve got 10 blue shirts and 5 that are striped.” It saves time and effort!

When it comes to stablecoins, the aggregate report can show you how much you have overall, rather than listing out every single transfer or balance. And for NFTs, it can sum up the total number of them you own, maybe even categorize them if you’d like.

By using this reporting, you can get a clearer picture of your assets without getting bogged down in the details. This way, if you know what you have at a glance, you might find you don’t need to ask for support about your transactions as often.

Hope that helps clear things up! If you’ve got any more questions, feel free to ask. (irs.gov).

• Go ahead and utilize Zero-Knowledge (ZK) credentials (VC 2. So, when we talk about "proofs without PII" using things like 0 + SD‑JWT, it’s super handy, especially if we’re handling donations from high-net-worth individuals or celebs. Hey there! So, it looks like Android and iOS wallets are beginning to introduce native support for OID4VCI/OID4VP. This is really great news because it’s going to make things a whole lot simpler for everyone! (androidcentral.com).

If you're thinking about treasury rebalancing, I'd recommend sticking with native burn/mint stablecoin bridging (you know, CCTP) instead of messing around with liquidity pools or those lock-and-mint bridges. It’s just a smoother option! This method really helps reduce the need for trust assumptions and keeps operational costs low, not to mention the benefits of USDC v2. 2 helps to lower gas fees and makes everything run a lot smoother. (circle.com).

Just a quick reminder: when you take your crypto campaigns nationwide, make sure you're following those state solicitation rules. It's super important to keep everything in line on your web forms and in the footers of your emails! This still holds true, even if a DAF or some platform is taking care of the assets on your behalf. (irs.gov).

What Success Looks Like (GTM Metrics We Instrument)

Finance and Audit

We're on top of things and making sure that every single gift over $5,000 gets sent for appraisal automatically. Plus, just so you know, there won't be any late appraisals after the deadline! We usually have everything wrapped up within 2 days or even less after we get a gift. This includes taking care of the CWA and getting that Section B signature request all squared away. Hey there! If you've got some crypto in your wallet, guess what? You can whip up all the necessary ASU 2023-08 disclosures with a single click! How cool is that? Take a peek here: (dart.deloitte.com).

Compliance

We’re super committed to being thorough, which is why we make sure to log every single one of our pre-transfer sanctions screenings, complete with evidence hashes. After doing some tweaking, we’ve successfully managed to keep the **false-positive hold rate under 0. Sure thing! You can find all the details you need right here: (ofac.treasury.gov). It’s about 5%!

Treasury

Did you know that over 95% of cross-chain rebalances are happening thanks to our native CCTP? It's pretty impressive! Plus, when Fast Transfer is on deck, we’re wrapping things up in under 10 minutes from start to finish. How cool is that? If you want to dive deeper into this topic, check it out here: circle.com. You’ll find some great info!

Development

Since we started using our "instant receipt + appraisal concierge" approach, it's been great to see an uptick in both the average size of crypto gifts and how many people are following through with their donations. Just to paint a picture for you, industry standards indicate that crypto gifts are 30 to 50 times bigger than the usual cash gifts you’d find on popular online platforms. That's pretty impressive, right? Dive deeper at: (thegivingblock.com).

Where 7Block Labs Fits

• Turning Strategy into Code: We take your policies and procurement requirements and transform them into robust contracts and integrations that tick all the boxes for those pesky audits. Take a look at our web3 development services and blockchain development services. We’ve got you covered on everything from intake to treasury management and credentialing layers. Let us help you navigate the world of blockchain technology!
• Security Comes First: We take your safety seriously! That’s why we dive deep into potential threats, looking out for things like sanctions evasion, replay attacks, and even those tricky poisoned input situations. After we have that sorted out, we dive into some detailed audits to make sure everything's in tip-top shape. Check out our security audit services to learn more about what we offer!
• Systems Integration: We make it super easy to link your on-chain attestations and donations directly to your CRM or ERP systems through our blockchain integration services. On top of that, we can totally get CCTP-powered cross-chain solutions up and running. This way, everything will flow together smoothly!
• Fundraising Ops: Looking to set up some DAF-first or hybrid flows and partnerships? No worries, we’re here to help! Check out our fundraising advisory and see how we can support you on this journey.

Brief in-depth details you can hand to Procurement

IRS substantiation and timelines:

• Appraisal window: Just a heads up--make sure that the valuation date is either within 60 days before you give the gift or is the same day as the gift. Just a heads up, make sure you get your appraisal in by the due date for your return, even if you’ve filed for an extension! Hey, just a heads up--make sure you complete Section B of Form 8283. And if your donation is more than $500,000, don’t forget to include that appraisal with your return. You got this! Just a heads up: digital assets aren’t seen as "publicly traded securities" when it comes to these rules. So keep that in mind! Take a look at this link: irs.gov. You might find it really helpful!

Broker reporting and donor messaging:

• 1099-DA: This form will show you the total earnings from sales in 2025, plus it’ll include the cost basis for a few sales made in 2026. Oh, and if you’re working with qualifying stablecoins, you might have the option for some aggregate reporting. Plus, there’s a bit of flexibility when it comes to certain NFTs as well!
  Don't forget to refresh the donor FAQs! It’ll really help clear up any possible confusion. If you want to dive deeper into this, you can check out more details here: (irs.gov).

OFAC and AML:

• Risk-based program: It's a good idea to set up screening both on-chain and on your server. Don't forget to include geolocation checks, and make sure you keep records of everything for reference. Make sure to hook up the Chainalysis Oracle/API to your system and don’t forget to write down your policies in detail. If you want to dive deeper into the details, check it out here: ofac.treasury.gov.

Stablecoin rails:

• CCTP V2: Dive into the main framework where you'll learn all about burn and mint attestations. We'll explore the details of Fast Transfer and fee switching, and don’t forget about USDC v2! It’s all about getting familiar with how these elements work together. We’ve got two things to highlight: gas savings and EIP-1271 support for account abstraction wallets. If you want to dive into the details, just check this out: (circle.com).

Accounting:

• ASU 2023-08: So, this new standard is all about how we handle fair value reporting through earnings. It also emphasizes the need for a clearer presentation of assets and requires companies to disclose any significant holdings. It all kicks off for fiscal years that begin after December 15, 2024. If you want to dive into the details, just check this out: (journalofaccountancy.com).

Multi-state charitable solicitation:

• Stay on top of updates: Make sure your website and emails have the latest disclosures. It’s super important to keep track of your registration footprint too--take some time to map it out and keep everything up to date! If you want to learn more, check out this link: irs.gov. It’s packed with useful info!

Final Checklist for Your 2026 Crypto-Philanthropy Launch

Alright, let’s kick things off by figuring out whether you want to keep or switch things up for each type of asset. Hey, if you’re working in retention, don’t forget to roll out those ASU 2023-08 controls! If you're curious, you can find all the details about it here. Let's get those USDC flows rolling and make sure we set up CCTP for managing your treasury across different chains! Hey, just a quick reminder to make sure you include the pre-transfer sanctions screening and geofencing. It's super important! On top of that, using zk-credential proofs is a great way to cut down on how much personal info you have to deal with, all while keeping things secure and organized. If you're looking for more details, check this out here. It's got everything you need! Make sure you get those appraisal SLAs sorted out and automate those 8283/8282 workflows. It'll really help you save some time! Hey team! Just a quick reminder to update those donor receipts and FAQs about the 1099-DA and appraisal rules. It's also super important to ensure that our support team is up to speed with all the new info. Thanks for staying on top of this!

• And don’t forget to include those dynamic state disclosures on all your web donation pages! It's super important. If you're looking for some help with that, you can check it out here.

Alright, if you’re looking to keep things running like clockwork, here’s the game plan: We'll whip up a blueprint and get those rails sent out to you. Plus, don't worry--we'll be right here to help you out as the year wraps up! Hey there! If you're curious about how we do things, take a moment to check out our smart contract development and dApp development techniques. You'll get to see what makes our approach unique! Once you've got everything sorted, go ahead and connect USDC/CCTP with our awesome cross-chain solutions. You’ll find it super helpful! If you're all about that DAF-first approach, we’ve got you covered! We’ll create partnerships and tailor the entire experience to fit your brand perfectly.

CTA -- Let’s Tackle Your Bottleneck Together

Hey! So, if you’re the CFO or General Counsel for a U.S. company, here’s something you might want to pay attention to. If you're involved with a nonprofit and are preparing for over $1 million in non-cash gifts for the 2026 tax year, we’d be thrilled to lend a hand! If you've run into problems with denied deductions or had your 8283 forms rejected in previous audits, how about we schedule a 45-minute working session? Let’s tackle this together!

Come hang out with our awesome lead Solidity architect and our nonprofit FinOps guru as we dive into one of your real 2025 gifts. We can't wait to explore it together! We'll help you find any gaps in your appraisal, 8283, or control processes. By the time we wrap up our session, you’ll have a clear schematic and a straightforward fixed-fee build plan ready for your Procurement team to give the green light.