What is bitcoin?
Bitcoin is money that is digital, decentralized, and scarce. For more resources on bitcoin, please see our curated Bitcoin Resources page here.
Why does GivApp make bitcoin donations available?
Bitcoin is sound money. While it is regulated in the United States, it is free of many of the limitations placed on other financial transactions that occur within traditional banking channels. For example, bitcoin transactions are faster, cheaper, and final. Bitcoin can be sent instantaneously and for almost no fee. Bitcoin can be sent across national borders. Bitcoin can be censorship-resistant. As Christians around the world face growing threats of persecution, censorship resistance becomes more important. Financial transactions in the traditional banking system can and have been seized by banks, courts, and other organizations based on ideological differences. This poses a danger to Christians and missionaries in nations and regions hostile to the gospel.
How are bitcoin donations processed by GivApp?
All bitcoin donations are made to the GivApp Christian Foundation (GACF). The GACF has created a secure bitcoin wallet to receive bitcoin donations. Each organization has a unique address assigned to them. When a bitcoin donation is made, the GACF is able to match the wallet address to the intended organization. The GACF then reaches out to the organization to inform them of the donation and provide them with their options. This process is described below.
How does the GivApp Christian Foundation distribute bitcoin donations?
Upon receipt of a Bitcoin donation, GACF notifies the organization of the donation by email. The email provides them with the amount of donation, denominated in bitcoin, with an estimated dollar value. The organization is given three options:
- They can request GACF liquidate the bitcoin, converting it to cash, and then mail them a check to their address of record.
- They can provide GACF with their bitcoin wallet address, if they have one, and we will send their bitcoin to their wallet.
- We will hold their bitcoin in out secure wallet until they direct us to do otherwise.
Isn’t Bitcoin used by criminals?
While this is a common criticism levied against bitcoin, our response is, “Isn’t the dollar used by criminals?” Bitcoin does have characteristics that allow for anonymity, but Bitcoin runs on a public ledger called the blockchain. Every transaction ever initiated on the blockchain is recorded and viewable for anyone to see. Bitcoin is actually a poor choice for criminals. There is an ever-existing breadcrumb trail. We believe bitcoin makes criminal activity more difficult and is, therefore, a superior form of money.
Where can I purchase bitcoin?
There are many exchanges available to the public where bitcoin can quickly and easily be obtained. PayPal, CashApp, Venmo, Gemini and Coinbase are some of the more popular, regulated exchanges.
Why would I donate bitcoin instead of dollars?
There are many reasons a person or entity may choose to donate bitcoin. They may want to maintain anonymity. They may believe the future value of bitcoin will be greater than its current value and so desire to see the ministries they support hold assets that will increase over time. There can be significant tax benefits to individuals who hold highly appreciated bitcoin. More and more, individuals prefer to transact in bitcoin rather than dollars. While this concept is new or foreign to many, the trend is moving toward bitcoin becoming a mainstream form of currency.
Are there benefits to the organization if I donate Bitcoin?
If the organization decides to liquidate the bitcoin by converting it to cash then they have your donation just the same as if a donor had given cash initially. We believe a significant benefit of donating bitcoin to organizations is that a donor is giving them an asset that has potential to appreciate over time, similar to real estate or securities. One of the definitions of bitcoin is “digital property.” As such, the receiving organization now holds a scarce, desirable asset that has the potential to appreciate over time. For organizations that are able to maintain their operations financially without liquidating the donated bitcoin until a future date, your donation could become increasingly valuable over time.
Will the organization know the identity of a bitcoin donor?
Due to the anonymous nature of bitcoin, GivApp LLC and the GivApp Christian Foundation have no way to track with certainty the identity of a donor who gives bitcoin. Therefore, if the donor would like the organization to know they have donated a specific amount of bitcoin, they will need to contact the organization. Otherwise, the donation will be anonymous.
Are bitcoin donations tax-deductible?
Yes, if they meet IRS guidelines. As with any tax matter, a donor should confer with their tax advisor. If the donor wishes to receive a tax deduction for their bitcoin donation they should maintain a record of the donation including the amount, date, and time of the donation. They should also notify the organization of the donation so the organization can properly account for it.