February 28, 2023
As cryptocurrency grants and contributions to nonprofits continue to increase, nonprofit finance, accounting and fundraising professionals are increasingly seeking guidance on the receipt of cryptocurrency, the options for converting to cash, and the associated accounting and tax implications. Without the appropriate guidance, nonprofits will miss out on opportunities for increased revenue from crypto donors, incorrectly account for transactions, and erroneously advise their donors on the correct tax treatment of their donations. This will in turn have consequences for the annual audit and the accurate completion of IRS forms.
In December 2022, the FASB Board, in response to overwhelming feedback and demand, published its initial guidance relating to the accounting and disclosure requirements of crypto assets. Then in January 2023, the IRS released a Chief Counsel Memorandum on the determination of how taxpayers must substantiate the value of cryptocurrency donations over $5,000 for purposes of the charitable contribution deduction.
To help your organization develop its cryptocurrency acceptance policies and procedures, please join Omid Mohebbi, CPA, and Katelyn Miller, CPA, MST, for a very timely update on the current landscape of nonprofits and crypto assets.