IRS Update Reignites Concerns About Crypto Donation Appraisals

The IRS recently confirmed individuals making large donations of cryptocurrency must get those amounts appraised—stoking fears that the requirement could discourage charitable giving.

The agency updated its frequently asked questions page on virtual currency transactions in late December to add two new questions on the responsibilities and reporting obligations for charitable organizations that receive digital asset donations. One of the agency’s new answers mentions donations greater than $5,000 and the appraised value of the contributed property—indicating that individuals who make high-value cryptocurrency donations must have those amounts verified by a qualified appraiser just like most other types of donated property.

But the challenge of finding a qualified appraiser in the cryptocurrency space that meets the agency’s criteria and the cost of those valuations will discourage donations, according to crypto advocates and individuals who work with potential donors and…