This episode provides an extensive overview of the legal and practical considerations for Canadian charities accepting cryptocurrency donations.

It confirms that charities can accept crypto, but must treat it as a gift-in-kind for tax purposes, requiring immediate conversion to Canadian dollars to issue official tax receipts and determine fair market value.

The document explores the benefits of attracting a new, younger donor base and reducing transaction fees, while also warning about significant challenges such as the volatility of crypto, the technical complexity involved, and the enhanced audit risk posed by the Canada Revenue Agency (CRA).

Ultimately, the source recommends that small charities should cautiously weigh the compliance costs against the benefits, often suggesting they avoid accepting crypto unless dealing with very large donations, while medium to large organizations might consider it with the proper legal and technical infrastructure.

The discussion also offers historical context on past Canadian recessions and highlights "silver linings," such as the stability of a foundation and donor-advised funds.

Support for Your Canadian Charity or Not-for-Profit

Running a successful charity requires passion for your mission and a rock-solid foundation. This episode is made possible by the professional teams who help organizations like yours thrive.

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A Special Mention: A huge thank you to our friends at OrgHub.ca, an innovative software platform that provides not-for-profits and charities across Canada with a streamlined, modern foundation for incorporation and corporate governance.