Cryptocurrency
Cryptocurrency
Gifts of Cryptocurrency (also known as virtual currency) can have tax advantages and provide meaningful support for the Darden School of Business.
Gift options
- The UVA Foundation, for the benefit of the University of Virginia, its schools, units, and related foundations, can accept gifts of cryptocurrency valued at a minimum of $5,000.
- Gifts of cryptocurrency must be made outright for immediate use. These gifts cannot be used to fund a charitable gift annuity or a UVA-trusteed charitable remainder trust or charitable lead trust.
Benefits
The IRS issued a 2014 notice explaining that it will treat cryptocurrency as a capital asset (rather than currency) for tax purposes. Your tax benefits will be determined accordingly. This means the following:
- If you have held the cryptocurrency for more than a year, you may avoid capital gains tax. If you have acquired such units over time, you may consider identifying and donating the specific units with the most appreciation (the lowest cost basis).
- You can claim an income tax charitable deduction for your gift, at either cost basis or fair market value (depending on how you acquired the cryptocurrency and how long you’ve held it), which can reduce taxes owed if you itemize deductions.
- Note that you will need to substantiate your claimed deduction. You must obtain a Qualified Appraisal to substantiate a claimed deduction in excess of $5,000, and you will need to complete Schedule B of Form 8283 and file it with your federal return. The UVA Foundation will file Form 8282 to report the sale of the cryptocurrency. Please check with your advisors to confirm what you need to support your claimed deduction.
How to make a Gift of Cryptocurrency
- Contact your development officer or the Darden School Foundation. They will work with you to notify the UVA Foundation of your intended gift and to provide important information about the cryptocurrency and how you want your gift used to support Darden.
- The UVA Foundation has a Coinbase wallet. Once the proposed gift is approved, we will provide you with the UVA Foundation’s Coinbase wallet address. Please note that the approval process will take a little bit of time to ensure we can accept and process your generous gift.
- The UVA Foundation will liquidate the cryptocurrency when received and send the net proceeds to Darden to be used for the purposes you designate when you make your gift.
- You will receive UVA campaign and gift credit in the amount of the net proceeds received.
The Cornerstone Society recognizes those who are honoring the University’s future through planned gifts, including bequests, beneficiary designations, charitable gift annuities, and charitable trusts.
The University of Virginia Darden School Foundation does not provide legal or tax advice. We recommend that you seek your own legal and tax advice in connection with gift and planning matters. To ensure compliance with specific IRS requirements, we disclose to you that this communication (including any attachments) is not intended or written to be used and cannot be used for the purpose of avoiding tax-related penalties.