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 Denison.

Your Benefits

Your cryptocurrency gift 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: Check to see if you own a form of cryptocurrency that Denison currently accepts.  Denison currently only accepts Bitcoin and Ethereum through an agreement with Fidelity Charitable. (Alternatively, if you have a donor advised fund, confirm with your fund’s sponsoring organization if you are able to transfer cryptocurrency to your account. Then you will be able to recommend a grant to Denison.)

Step 2: Transfer your cryptocurrency. Should you wish to gift crypto to Denison, please contact Glenn Garbutt (610-301-3242 or glenn.garbutt@fmr.com) at Fidelity Charitable for up-to-date instructions. Fidelity Charitable will liquidate your crypto as soon as possible after the transfer and use the resulting cash to open a donor advised fund (DAF) under your name.

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 at the university.

Questions?

If you are interested in gifting cryptocurrency to Denison, please contact your Development Officer or the Office of Gift Planning at 740-587-5023 or giftplanning@denison.edu. We are happy to walk you through the process.