- 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 If I donated in bitcoin, can I request a refund of my donation?
Can I donate bitcoin?
UPDATE, October 17, 2019: Yes, the Mozilla Foundation is now able to accept donations of bitcoins or bitcoin cash through Bitpay. If you have questions, check out our FAQ or contact us at firstname.lastname@example.org.
Is Mozilla worried about the fluctuating value of bitcoin?
No. Mozilla’s service provider, Bitpay, provides Mozilla and other nonprofit clients the ability to convert bitcoins/bitcoin cash received into U.S. dollars immediately after they are donated. Thus, Mozilla does not hold these assets long enough for any fluctuations in value to affect the value of a donation.
Does giving bitcoin result in more of my charitable donation going to transaction fees?
No. Bitpay’s service fees, at a flat 1%, are actually lower than credit card or Paypal transaction fees.
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/bitcoin cash 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 bitcoins as property for U.S. tax purposes (see IRS Notice 2014-21), donations of bitcoins 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 (which may include specific tax forms or qualified appraisals), or other matters. (See http://www.irs.gov/taxtopics/tc506.html for an overview.) Depending on your individual circumstances, a gift of bitcoins 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 the 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 email@example.com 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.
If I donated in bitcoin, can I request a refund of my donation?
Unfortunately bitcoin donations to the Mozilla Foundation are generally not refundable, except as may be required by law or in exceptional circumstances.