Make a Charitable Impact with Crypto and Your DAF: A 2025 Guide for Donors

If part of your portfolio contains cryptocurrency—or “crypto”—you’ve likely paid close attention throughout the market’s latest resurgence. With the global cryptocurrency market exceeding $3.74 trillion and Bitcoin crossing historic highs this year, many donors are re-evaluating how to put their appreciated assets to work for philanthropic impact. 

If you are experiencing positive gains from recent activity in crypto, donating appreciated digital assets can be one of the most tax-efficient and impactful ways to give. And the best tool for making that happen may already be at your fingertips: a donor-advised fund (DAF).

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Why Now Might Be the Right Time to Give Crypto

The beginning of 2025 brought renewed investor confidence, with Bitcoin and Ethereum both reaching levels not seen since late 2021. If you acquired crypto at lower values and have held it for over a year, donating some of those long-term appreciated assets could offer significant tax advantages:

• Capital Gains: By donating directly, rather than liquidating, you may be able to avoid capital gains tax liability. 

• Claim a fair-market value deduction: For long-term assets, you may be able to deduct the full market value at the time of donation.

• Maximize your philanthropic potential: More of your asset’s value goes to the causes you care about. 

But timing is everything. In a volatile market, gains can erode quickly. That’s why donors are acting decisively when valuations peak—and a DAF can make the process seamless. 

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How a Donor-Advised Fund Simplifies Crypto Giving

A DAF acts as your charitable giving account. When you contribute crypto to your NPT DAF, the sponsoring organization handles the liquidation for you. The net proceeds are then made available in your DAF account for you to recommend grants to any IRS-qualified nonprofit. 

Here’s how the process typically works with NPT:

1. Initiate your intent to donate: Let NPT know which crypto asset and how much you wish to donate.
2. Assist with compliance & due diligence: You’ll provide some basic documentation, such as when and how the crypto was acquired and your ID (part of Know Your Client/Anti-Money Laundering requirements).

3. Sign the affidavit: This confirms the gift is irrevocable and acknowledges potential market fluctuations between transfer and sale.

4. Transfer the asset: NPT will provide a secure wallet address. A small test transfer is encouraged before sending the full amount.

5. Receive a gift receipt: This will confirm the type and quantity of crypto received. You are responsible for obtaining a qualified appraisal if you plan to claim a charitable deduction exceeding $5,000.
6. Grant at your pace: Once liquidated, the proceeds are available in your DAF to recommend grants—immediately or over time.
    

Cryptocurrency cannot be held as an investment, according to NPT’s investment policy. Accordingly, liquidation usually occurs shortly after receipt. This helps avoid additional volatility risk.

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Creative Strategies: Beyond the Standard Gift

While most donors use their DAFs to make grants on their own timeline, some are exploring more collaborative strategies. For example: 

• Pooled giving through designated funds: If your favorite nonprofit isn’t set up to accept crypto, NPT can establish a designated fund to aggregate donations from multiple crypto donors and then grant out to the organization.

• Mission-aligned giving: Donors are pairing crypto giving with specific impact areas—targeting nonprofits aligned with those missions.

• Timing donations around market events: In 2025, smart donors are capitalizing on price rallies by donating at the top of the market, then recommending grants when needed. 

Things to Consider in 2025

• Volatility remains high: While markets have rebounded, they remain sensitive to regulatory news and macroeconomic shifts. Don’t wait too long to act if you’re aiming to donate at a high.

• Regulatory landscape is evolving: The U.S. continues to refine tax guidance for digital assets, but donating through a 501(c)(3) DAF remains a compliant and proven strategy.

• Not all DAFs accept crypto: Options vary by DAF sponsor. NPT first started to accept gifts of cryptocurrency in 2017. Since then, NPT has accepted gifts of Bitcoin, Bitcoin Cash, Ethereum, Litecoin, Monero and Maker, among many others—helping donors convert these assets to charitable capital.  

Get Started with Confidence

If you hold crypto and are ready to make a meaningful impact, contributing to your Donor-Advised Fund allows you to turn digital wealth into real-world good—with efficiency, flexibility, and tax advantages. 

To learn more about contributing cryptocurrency to a DAF at NPT, email us at npt@nptrust.org. We’re here to help you make a smart, strategic, and lasting charitable gift. 

Updated from previous versions published 7/21/24, 12/23/24, and 2/6/25.