Cryptogiving.ca, a website connecting donors with charitable organizations that accept cryptocurrencies, officially launched on Friday.
The website will serve as a database for individuals seeking to donate digital currencies, such as bitcoin and ethereum, to charities across Canada that are willing to accept them.
“This rise in interest and value of digital currencies over the last year has led to a substantial increase in interest in their donations for charitable purposes, both by those giving and the organizations receiving,” says Michael Powell, spokesperson for cryptogiving.ca, in a statement.
“Dozens of Canadian charities are currently accepting or moving to accept cryptocurrency donations,” he adds.
Many charities in Canada that have begun to accept donations of cryptocurrencies also provide tax receipts for donations, allowing individuals to claim the deduction on their income taxes. However, Canada’s charitable giving rules do not view cryptocurrency donations as equivalent to charitable gifts of other investments, particularly in regards to capital gains.
“Presently charitable cryptocurrency donations receive none of the favourable capital gains treatment that other donations of assets receive, such as traditional securities, like stocks,” Powell says.
“These securities are exempted from capital gains when given to charities. This incentivizes the direct donation of securities, which ultimately means larger donations,” he adds.