EA Funds supports making donations in cryptocurrency. Cryptocurrency (crypto for short) is a type of digital currency, secured by cryptography. Common cryptocurrencies include Bitcoin, Ethereum, and Tether.
Why donate with crypto in general?
Cryptocurrency is an asset, a little bit like shares in a company. Cryptocurrencies are traded just like shares, and have value that can be expressed in terms of regular (fiat) currencies, like USD or GBP.
You could always just sell some of your cryptocurrency (i.e. converting the value back into a regular currency), and then donate the proceeds. However, it might be better to donate the cryptocurrency instead, for two main reasons.
Firstly, it’s usually more tax-efficient. Because cryptocurrencies are an asset, selling them (and making a profit based on what you originally paid for them) incurs capital gains tax (CGT) in many jurisdictions. If you instead donate the cryptocurrency, you’ll avoid a capital gains event, which means you won’t have to pay CGT on those profits. (This shouldn’t be treated as tax advice, and you should check what the relevant laws are in your country.)
Secondly, it’s simpler: If you already own cryptocurrency, then it saves you the extra hassle of going to an exchange, selling your crypto, waiting to withdraw the proceeds, and then finally making a donation.
Why donate with crypto on EA Funds?
EA Funds is one of the best places to donate with crypto.
- Lowest possible fees – many crypto donation platforms charge processing fees of between 1% and 5% (or more). We’re integrated directly with our exchange, so our fees are as low as they can possibly be (typically around 0.2%), and we don’t charge any additional processing fees.
- Huge selection of coins and tokens – in most jurisdictions you can donate in over 130 cryptocurrencies. US donors are limited to a smaller number of currencies for regulatory reasons, but there are still more than 20 coins and tokens to choose from.
- Institutional experience – we’ve been accepting crypto donations since 2017, and have strong ties to the crypto community.
- Ease of use – it’s super simple to donate. Just choose your allocation, enter your payment amount, make your transfer, and verify your donation. The whole process should take you less than two minutes.
Tax-deductible – if you live in a supported jurisdiction (US, UK, NL), your donation will be tax deductible. UK donors can easily claim Gift Aid.