If you're holding cryptocurrency and considering a charitable gift, one of the first questions is which coins are actually eligible to donate. The good news: most major cryptocurrencies are widely accepted by charities that take crypto donations. The list keeps growing as the ecosystem expands.

Here's a practical overview of the main categories of donatable crypto and what to look for.

Bitcoin and Ethereum: The Foundation

Bitcoin (BTC) and Ethereum (ETH) are by far the two most-donated cryptocurrencies. Together they make up the majority of charitable crypto gifts. Every donation processor that handles crypto for nonprofits will accept these two — they're the default.

If you're sitting on appreciated BTC or ETH that you've held for more than a year, you have arguably the most tax-efficient asset to donate. The combination of avoiding capital gains tax and claiming a fair-market-value deduction is hard to beat.

Stablecoins: USDC, USDT, and Others

Stablecoins are cryptocurrencies designed to maintain a constant value (typically $1 per coin) by being backed by reserves of cash or short-term debt. The most common are USDC and USDT.

Stablecoins are widely accepted as donations because they don't have the price volatility risk of other crypto. A $1,000 USDC donation is, essentially, a $1,000 cash donation delivered over a blockchain. There's no capital gains math to do because stablecoins don't really appreciate.

For donors who hold stablecoins as part of their portfolio, donating them is just a convenient way to give cash electronically.

Major Alt Coins

Beyond Bitcoin and Ethereum, several other major cryptocurrencies are commonly accepted as charitable donations. These include:

Most charities set up to receive crypto can accept these coins through their donation processor. The tax treatment is the same as for Bitcoin or Ethereum: appreciated coins held long-term qualify for fair-market-value deduction without capital gains tax.

Smaller and Less Common Tokens

The world of cryptocurrency includes thousands of tokens beyond the major coins. Whether a charity can accept a smaller or less-common token depends on whether their donation processor supports it and whether there's a liquid market to convert it to cash.

If you hold a less-common token and want to donate it, check with the receiving charity first. Some processors maintain a list of supported coins on their website. For tokens not on the standard list, there are sometimes manual options for larger donations.

What to Look For When Choosing What to Donate

If you hold multiple cryptocurrencies and have flexibility, a few factors are worth considering:

Quick tip: Many donors choose to donate their most-appreciated coins specifically because the tax benefit is largest there. A coin you bought for $50 that's now worth $5,000 produces a much bigger deduction (and avoids a much bigger capital gains tax bill) than a coin you bought at $4,500 that's now worth $5,000.

What About NFTs?

Donating NFTs (non-fungible tokens) is possible but less common and more complicated. The IRS treatment of NFT donations is still evolving. Valuation, qualified appraisal, and recordkeeping requirements are stricter than for fungible coins. If you're considering an NFT donation, it's worth talking to a tax professional first.

Final Thoughts

For most donors, the choice comes down to: pick the cryptocurrency in your portfolio where the tax advantages of donating directly are biggest. For long-term holders of appreciated Bitcoin, Ethereum, or any of the major alt coins, that's usually a clear winner over donating cash.

This article is for informational purposes only and is not tax, legal, or financial advice. Tax outcomes depend on your individual situation. Consult a qualified tax professional before making donation decisions.