- 1 Can I donate bitcoin?
- 1.1 Is Mozilla worried about the fluctuating value of bitcoin?
- 1.2 Does giving bitcoin result in more of my charitable donation going to transaction fees?
- 1.3 Is it tax-deductible to donate using bitcoin?
- 1.4 Are there any special tax rules for contributions of bitcoin?
- 1.5 What documentation does Mozilla provide to donors?
- 1.6 What personal information does Mozilla require Bitcoin donors to provide?
- 1.7 How secure is Coinbase?
Can I donate bitcoin?
UPDATE, MONDAY APRIL 30, 2018: At this time, we are unfortunately unable to accept bitcoin donations. We are currently investigating new solutions around reenabling bitcoin donations. If you have questions, check out our FAQ or contact us at email@example.com.
Is Mozilla worried about the fluctuating value of bitcoin?
Ordinarily such fluctuations, like those of other investments, are not troubling. Mozilla’s bitcoin wallet provider, Coinbase, also provides Mozilla and other nonprofit clients the ability to convert bitcoins received into U.S. dollars at any time. Thus, Mozilla retains full power to keep bitcoin or to convert it into dollars without losing value, whichever seems more prudent at the time.
Does giving bitcoin result in more of my charitable donation going to transaction fees?
While Mozilla may elect to have Coinbase convert some donated bitcoin into United States dollars, Coinbase waives all transaction fees for nonprofits who use its service, including Mozilla. That means the value in US Dollars of the bitcoin received by Mozilla (and the U.S. dollars it receives if it converts its bitcoin to cash) is the same amount donated by the donor and/or converted by Mozilla, without further reduction.
Is it tax-deductible to donate using bitcoin?
The Mozilla Foundation is a California non-profit corporation exempt from United States federal income taxation under IRC 501(c)(3) and a public charity classified under IRC sections 170(b)(1)(A) and 509(a)(1). Bitcoin donations Mozilla receives are considered charitable contributions under U.S. federal tax laws, to be used in its discretion for its charitable purposes.
Are there any special tax rules for contributions of bitcoin?
Because the IRS has indicated that it will treat bitcoin as property for U.S. tax purposes (see IRS Notice 2014-21), donations of bitcoin may be subject to special rules as to the amount of your charitable deduction, the documentation that must be provided to claim a tax deduction, or other matters. (See http://www.irs.gov/taxtopics/tc506.html for an overview.) Depending on your individual circumstance, a gift of bitcoin could have better or worse tax consequences than a cash gift. You may wish to consult your tax advisor about the tax consequences of giving bitcoins in your specific circumstances and about the documentation required in order to claim a deduction.
What documentation does Mozilla provide to donors?
We appreciate our donors and are happy to provide confirmation of their donation upon request. All bitcoin donors should automatically receive an acknowledgement of their donation for U.S. tax purposes, sent via email to the address they provide when they donate.
Depending on the amount of their non-cash contributions during the year, donors may also determine that they need Mozilla Foundation to sign a Form 8283 confirming its receipt of their donation (e.g., if their total bitcoin donations to all charities for the year exceed $5,000). Mozilla Foundation is happy to sign a donor’s Form 8283 upon request, but it is the donor’s sole responsibility to determine whether this is necessary and, if so, to provide the form for signature at least 10 business days in advance. PDF copies of the form may be sent to firstname.lastname@example.org for signature. Any other documentation (e.g., an appraisal) remains the donor’s sole responsibility.
What personal information does Mozilla require Bitcoin donors to provide?
In most cases, Mozilla requires only an email address, which is necessary so that Mozilla can send them an acknowledgment letter for tax purposes.
For bitcoin contributions of more than $5,000, and other contributions for which the donor provides Form 8283 to Mozilla for signature, Mozilla expects to file a Form 8282 with the IRS in connection with any subsequent disposition of the donated bitcoins during the three years following the gift. In such cases, we will request the donor’s name, address, and U.S. tax identification number so that we can properly complete our tax forms. Typically, the donor is required to provide that information to Mozilla on a Form 8283 in any event, in order to secure his or her own tax deduction (see above). If we do not hear from a donor within 90 calendar days from the date of his or her donation, we reserve the right to file the Form 8282 using our best available information.
How secure is Coinbase?
Coinbase is committed to keeping its platform secure by encrypting all sensitive customer information and storing 97% of funds offline to protect against theft. Coinbase also utilizes an active community of security researchers to encourage the continuous auditing of their platform. For more information on the measures Coinbase takes to protect your funds and information, visit their Security page: https://www.coinbase.com/security