How do churches handle USA cyber-currency donations?
- Thread starter KMK
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SolaScriptura
Puritanboard Brimstone
We only accept USD.
How do you do this without involving commerce on the Lord's Day? I assume it has to have some transfer; or is this all done from the individual? I was more thinking like taking electronic payments through a bank or paypal.
iainduguid
Puritan Board Junior
I'm no expert, but presumably it would be like a donation of stock - it would have to be realized in dollars so that a receipt could be issued for tax purposes. The one time this happened in our church, the ARP headquarters had someone from the stewardship department handle the details for us (I believe there are capital gains tax issues). Unless it is a significant gift, I would simply request the person make their donations in US currency, but I suppose there could be similar capital gains tax issues if they have held the cyber currency for a while. A competent accountant could advise.
There's no reason why any of this needs to happen on the Lord's Day.
There's no reason why any of this needs to happen on the Lord's Day.
Edward
Puritanboard Commissioner
Not my area of expertise, but it appears that it is treated as a gift of property, with some paperwork required from the charity so that the gift is tax deductible. So it doesn't look like it is much different from, say, accepting a gift of collectible artwork. https://www.irs.gov/individuals/int...tribution deduction is,for more than one year.
Edward
Puritanboard Commissioner
Generally if one is going to be involved in a gift of this sort, the transaction is going to need to be handled during normal business hours. If it is anything other than a publicly traded stock, an appraisal is likely required, and a fair amount of paperwork. It would seem to be exceedingly difficult to do this on the Lord's Day, and much easier to just try to get everything scheduled during the week.
Edward
Puritanboard Commissioner
So if I wanted to donate some appreciated stock so I could avoid the capital gains tax and thus maximize the value of the gift, your church would refuse? Or are you just speaking of not wanting gifts of cryptocurrencies from possible criminals?
SolaScriptura
Puritanboard Brimstone
We’d direct you to the PCA Foundation to help you manage your gifts. I don’t need money so bad that I’m going to invite a headache. I have enough of ‘em.
Unless it’s a ridiculous amount of money. Then I’d make it happen.
Also not my area of expertise, but this is my understanding of what the IRS says as well. It is 'currency' in name only.
"A36.A charitable organization can assist a donor by providing the contemporaneous written acknowledgment that the donor must obtain if claiming a deduction of $250 or more for the virtual currency donation. See Publication 1771, Charitable Contributions Substantiation and Disclosure Requirements PDF, for more information.
A charitable organization is generally required to sign the donor’s Form 8283, Noncash Charitable Contributions, acknowledging receipt of charitable deduction property if the donor is claiming a deduction of more than $5,000 and if the donor presents the Form 8283 to the organization for signature to substantiate the tax deduction. The signature of the donee on Form 8283 does not represent concurrence in the appraised value of the contributed property. The signature represents acknowledgement of receipt of the property described in Form 8283 on the date specified and that the donee understands the information reporting requirements imposed by section 6050L on dispositions of the donated property (see discussion of Form 8282 in FAQ 36). See Form 8283 instructions for more information. (12/2019)"
Moving forward, are more and more people going to want to donate cryptocurrency? It sounds like a headache.
If donations of cryptocurrency are designated by the IRS as 'collectibles', then what biblical guidelines do churches use to say yes or no? Is a church obligated to receive collectibles as donations? Should the church receive crypto and immediately sell it or keep it as an investment for the future? Cybercurrency can be easily kept in a cyber-wallet with a password.
I am trying to figure out why a church would say no to donations of cyber currency. The only hassle is where to keep the password to the wallet, and when to sell.
I am trying to figure out why a church would say no to donations of cyber currency. The only hassle is where to keep the password to the wallet, and when to sell.
iainduguid
Puritan Board Junior
Suppose I offer to donate to your church $10 worth of stock. Is it worth the hassle to figure out how to sell it, how to report it, etc? Do you accept gifts of artwork, ming vases etc? If it's $10,000 worth of stock, probably - especially if your denomination can help with the details of disposing of it.
Same with cryptocurrency: at some point it's not enough to be worth the hassle, if you aren't set up to receive it, especially if you are a small church. If it's a larger amount, maybe it's worth figuring it out.
As to keeping it as an investment, most churches I know aren't in the investment business. If someone donated stock, we would realize the value and use it immediately, which would normally be the donor's intent. I don't want to have to explain to a church meeting how I lost money by not selling it at the magic moment. If your church has an endowment (are there such churches in our circles?) which is professionally managed that may be a different story.
The best I can figure, the only hassles are keeping the password to the cyber wallet safe, and filling out the IRS forms. It might be easier also if these donations were only received at certain seasons of the year (like Dec.) then forms would only have to be filled out once.
We all had to figure out how to accept online payments, we might have to soon do the same with crypto.
We all had to figure out how to accept online payments, we might have to soon do the same with crypto.
Edward
Puritanboard Commissioner
The PCA Foundation does accept crypto at the denominational level. https://pcafoundation.com/giving/#giving-tabs|2 The denominational foundation also administers investments for individual congregations on a fee basis. https://pcafoundation.com/churches/designated-funds/
At least one large PCA church has set up its own foundation.
bookslover
Puritan Board Doctor
Our church only accepts actual money. Not that fake digital stuff.
How can cryptocurrencies exist anyway? Only the government can print money.
How can cryptocurrencies exist anyway? Only the government can print money.
The IRS does not consider it money, but property. From the IRS: "virtual currency is treated as property for Federal income tax purposes." Donations of crypto are treated like donations of real estate, stocks, or collectible artwork, for example. More and more it is being used as currency, however. (I believe Amazon accepts it as payment in some cases).
The attraction of crypto is that it is not regulated by any central government. And because of block chain technology, it cannot be stolen. (At least not yet.) Power to the people, right????? I am not sure.
Would your church accept a donation of real estate? How about 50,000 pesos?
Jake
Puritan Board Senior
Our church accepts cash/checks in person, digital ETF from a checking account (we have a very low cost arrangement originally made with a local bank and now are grandfathered into a large bank that purchased it), and also a brokerage account to facilitate stock transfers to us. I'm not sure if our brokerage would allow for bitcoin or similar currencies, but we would probably start there.
Edward
Puritanboard Commissioner
Tell that to folks that have lost millions to the 'exchanges' that have absconded with their deposits.
Schwab apparently does Crypto now, according to an email I got the other day. A quick search shows Ameritrade and Robin Hood do as well.
The government prints the dollars, but it's the Federal Reserve that issues it unless you have some old silver certificates.
But, in any event, private currency can be legally issued in the United States as the federal reserve admits:
ec 20070101 private money in our past present and future
The Federal Reserve Bank of Cleveland supports the US economy and our region by studying economic conditions and issues that impact our communities, serving financial institutions, and providing economic education and resources for all.
Seeking_Thy_Kingdom
Puritan Board Sophomore
I am a bit of a crypto fanantic and would love to see Churches gradually adopt crypto. Churches are not there yet and probably best not to start excepting crypto until the use of digital and decentralized cash gains more real world adoption.
One practical use of crypto right now would be with foreign missionaries and those who need to raise funds for legal defense. Personally I love Monero, a completely private coin and the transactions are untraceable. No tracking risk for the giver and receiver, and no way for the funds to be confiscated by authorities or frozen by financial institutions.
If Churches do move start moving towards digital currency for tithing, it would have to be the well established and stable coins... none of this DOGE nonsense.
One practical use of crypto right now would be with foreign missionaries and those who need to raise funds for legal defense. Personally I love Monero, a completely private coin and the transactions are untraceable. No tracking risk for the giver and receiver, and no way for the funds to be confiscated by authorities or frozen by financial institutions.
If Churches do move start moving towards digital currency for tithing, it would have to be the well established and stable coins... none of this DOGE nonsense.
Edward
Puritanboard Commissioner
Not necessarily - if it is valued and converted to currency promptly, then there is little risk.
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