Federal Tax Benefits:

Crypto Donations:
○ Donors can deduct the fair market value (FMV) of the cryptocurrency on the date of the donation if they’ve held it for over a year.
○ Donors avoid paying capital gains tax on appreciated cryptocurrency when donating directly to the nonprofit.
Cash Donations:
○ Donors can deduct the full amount of their cash gift up to 60% of adjusted gross income (AGI) for contributions to a qualified 501(c)(3).
○ Cash gifts count toward the charitable deduction limit and should be documented with a written acknowledgment (receipt) for any gift of $250 or more.
Standard Deduction Benefits:
○ Donations count toward the charitable deduction limit (typically 60% of AGI for cash-equivalent contributions).

California State Tax Benefits:

Charitable Contribution Deduction (Crypto):
○ Similar to federal rules, donors can deduct crypto donations on their California state taxes.
Charitable Contribution Deduction (Cash):
○ Cash gifts to qualified nonprofits are deductible on California state returns, subject to the same AGI-based limits as federal.
○ Donors should retain their receipts to support state-level deductions.