More than 1,300 global nonprofit organizations are now embracing cryptocurrency donations, demonstrating how easy it is for charities to take advantage of new payment methods to collect funds.
As of early 2025, 10% of French people reported owning at least one crypto-asset. And while France is among the most cautious countries when it comes to crypto adoption, crypto-assets are attracting a younger, more diverse set of investors. Of those who already have crypto investments in France, 66% are in favor of making payments with crypto-assets.
While support of making payments with crypto-assets is high, there is no specific rule or regulation at the EU level concerning crypto donations to charities. Each EU member state regulates this activity, except if it falls within scope of the provisions in the EU Markets in Crypto-Assets Regulation (MiCA) concerning crypto services.
This Insight explores the structuring models for crypto donations, the legal framework and what it means for charities, and the tax regulations that charities need to bear in mind.
Means of Payment
Crypto-assets are already in use by non-governmental organizations (NGOs), which use stablecoins as a means of payment across the globe. In particular, using cryptocurrencies as a means of payment for the salaries of NGO staff, service providers, or partners is becoming increasingly common, especially in countries where access to banking services is limited, the national currency is weak, or there is high inflation. The use of cryptocurrencies as a means of payment is not a regulated activity in the EU if the NGO makes these payments on its own behalf.
Donations
The second use of cryptocurrencies by NGOs is fundraising during donation campaigns, and crypto-assets are likely to be a fertile ground for charities looking to raise needed funds. The benefits of accepting crypto donations include, but are not limited to, tapping into a market worth more than $3 billion, accessing donations in emerging countries without a banking infrastructure, increasing transparency in the donation system, and accessing a new donor base of those who only use cryptocurrencies.
Structuring Models
Several nonprofit organizations have chosen to permanently accept crypto donations as part of their regular fundraising strategy, while others have launched ad hoc campaigns in response to specific emergencies or humanitarian crises.
In practice, such fundraising initiatives include six key steps:
The Legal Framework
As stated above, if no specific regulations exist in an EU member state concerning donations in crypto, then donations in crypto are not subject to any specific rule or regulation in the EU unless they fall within scope of the MiCA, which recognizes three categories of crypto-assets: Asset Referenced Tokens (ARTs), Electronic Money Tokens (EMTs), and other crypto-assets, including Utility Tokens.
As part of crypto donation campaigns, charities may collect several types of crypto assets covered by the MiCA. However, nonprofit organizations collecting donations in crypto-assets are not expressly targeted by MiCA. This is because MiCA regulates service providers and not donation recipients. As long as nonprofits only accept donations in cryptocurrencies and do not offer regulated services (custody, exchange, etc) in return, nonprofits are outside of MiCA’s direct scope.
While charities accepting crypto donations do not need a MiCA license, they may choose to use a MiCA licensed crypto-asset service provider (CASP) to facilitate the management of donations.
Additionally, charities should monitor national laws for any additional compliance obligations and always adopt a set of risk-based good practices, particularly in relation to anti-money laundering and counter-terrorist financing. Some of these best practices include the following:
Tax Regulations
There is no specific EU tax rule for donation in crypto. Depending on the tax regime in each member state, the main issue with crypto donation is to check whether the donation is eligible for tax relief to reduce the donor’s tax bill.
Crypto donations may lead to taxable corporate gains if the nonprofit is partially or fully engaged in certain economic activities. Proper classification and accounting are essential to ensure compliance and avoid unexpected tax exposure.
When a charity receives crypto-assets, they are typically recorded at their market value on the date of the donation. If the asset is later converted into euros, any increase in value between the date of reception and conversion may be treated as a capital gain. In France, tax in this scenario is not income tax but potentially impôt sur les sociétés (corporate tax). If the nonprofit is deemed non-lucrative, it may be exempt. However, if the charity is engaged in economic or commercial activity, or if the donation is used within such a sector, the gain may be taxable under impôt sur les sociétés rules. In practice, most charities convert crypto-assets into fiat currency immediately after receiving a crypto donation to limit any tax risk.
French law allows an income tax deduction for donations made by individuals without consideration to qualified public-interest organizations. This applies to dons en nature (in-kind donation), not just monetary donations.
Crypto-assets are recognized under French law as biens meuble incorporels (intangible movable property); however, their fiscal treatment as donations remains legally ambiguous. The official tax receipt from CERFA number 16212*02 does not mention crypto-assets. This omission creates legal uncertainty and discourages many nonprofits from issuing tax receipts for crypto donations. As a result, donors may not be able to claim tax benefits for their crypto donations.
Key Takeaways
Crypto donations are likely to be a fertile ground for charities looking to raise needed funds, particularly as investment in crypto-assets grows with younger investors. Nonprofits should be intentional when structuring and running their crypto fundraising initiatives. Implementing best practices can potentially avoid costly tax implications, the need to secure a MiCA license, and undue risk, particularly in running afoul of anti-money laundering and counter-terrorist financing regulations.
The crypto-asset landscape continues to change rapidly in the EU and globally, and the domestic and international regulatory structure is likewise evolving apace. Charities should remain abreast of these regulatory changes and seek counsel to minimize exposure in their crypto fundraising initiatives.