Is accepting Crypto donations halal?
Is accepting crypto donations on my site safe and secure?
Are there any tax or compliance issues I should worry about?
What about volatility?
How does the donation process work?
What fees are involved?
What donor info will I receive?
How can I get notified when a donation is made?
What if a donor wants my org to hold the crypto donation?
Allah knows best, but we believe it is and many Muslim organizations already accepting cryptocurrency agree. Our belief is grounded in the Islamic principle that the base ruling for all things is permissibility until demonstrated otherwise. Some may point to the use of cryptocurrency to make illicit transactions, but it is important to remember that the use of a tool for an unlawful purpose does not necessarily make the tool itself haram. Indeed, most illicit transactions are actually conducted in US dollars, which every American Muslim organization accepts for donations.
Cryptocurrencies should be evaluated on their inherent characteristics, capabilities and purposes rather than how a subset of people may potentially use them. If you have concerns about the permissibility we strongly encourage you to seek advice from a qualified expert. It is important to find someone with requisite knowledge in Fiqh as well as a sound understanding of crypto assets. There are many writings on the internet that contain factual errors and incorrect information when it comes to describing the aspects of crypto assets being ruled on.
Yes. Using our partners’ technology, no cryptocurrency will ever actually pass through your site; it will be sent directly to Coinbase, the world’s largest crypto exchange, and a US dollar grant of equivalent value will be sent to your organization.
Thanks to Every.org’s setup as an intermediary 501(c)(3), you do not have to worry about tax or compliance issues associated with cryptocurrency donations.
When your donor gives their cryptocurrency, it is immediately sold to dollars to avoid any risks associated with price volatility
Please see our page outlining the donation process
Neither CryptoZakat or our primary partner Every.org charge any fees or surcharges. When a donor gives using payment links, the donation is processed using Coinbase Commerce, which charges a flat 1% fee to liquidate the donation into US dollars. Every.org sends the donor a donation receipt for the US dollar value at the time of transaction and will generate a USD grant for the organization the donor chose to donate to.
If your organization has claimed its profile on Every.org and connected its banking via Stripe, it will be able to retrieve grants on-demand, without any additional disbursement fees. For organizations that have not claimed their profile, Every.org relies on NetworkForGood to generate and mail a physical check. Unfortunately, NetworkForGood takes a 2.25% fee for providing this service. At the end of the month, Every.org sends the total dollar amount of donations a charity has received to NetworkForGood, which then mails a check to the nonprofit’s address on file on the 15th of the month. If you are an administrator at your organization, please claim your organization’s profile on Every.org. In most situations, the entire process can be completed in 2 business days or less.
Please reach out to us at email@example.com if you need assistance
Donors have the option to remain anonymous. If the donor chooses, you will receive their name and email address in addition to the amount donated and the date the transaction was made.
If you claim your Every.org profile you can get alerts every time a donation is made. We can also help set up webhooks to integrate donation notifications with your CRM software if you have it
While supporting crypto endowments for nonprofits is a long term goal we have set sights on with our partners, we do not currently have a means to support this with our platform. Most organizations are not well-equipped to securely hold crypto in self-custody. Holding cryptocurrency as an investment or reserve asset for your organization should involve significant consideration and planning. If you are serious about pursuing this and would like to be connected with professionals who can help you explore the decision, please contact us
Join our mailing list to stay up to date with new features we are building
DISCLAIMER: CryptoZakat’s tools utilize API data from third party sources that can be prone to market volatility, which may cause divergence from the reported price of an asset while utilizing the tool and the price a donation is executed at. Cryptozakat’s price quotes should not be used when completing official tax documents. The tools and resources on CryptoZakat.io are for educational and informational purposes only and are not intended to constitute, and should not be relied on for, tax, legal or accounting advice. Some donations may require qualified appraisals in order to be granted tax exemption from the IRS. Optimal tax strategies can vary greatly from person to person and we strongly encourage users to seek qualified guidance from a certified professional accountant or registered tax lawyer.
Copyright © 2022 CryptoZakat.io. All rights reserved.