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Crypto donations come with accounting challenges for nonprofits

BPM's Daniel Figueredo featured in Bloomberg Tax 06.25.18

Nonprofit Industry Group Leader Daniel Figueredo is featured in the Bloomberg article, “Crypto Donations Come With Accounting Challenges for Nonprofits.”

Nonprofit organizations in the U.S. are slowly beginning to accept cryptocurrency donations like Bitcoin, but they come with accounting challenges.

A lack of rules on how to account for cryptocurrencies leaves nonprofits to decide how to treat these donations.

They could be classified as a security, cash, or an intangible asset, said Daniel Figueredo, nonprofit and financial technology leader with accounting and consulting firm BPM LLP. He spoke during the Association of International Certified Professional Accountants nonprofit conference in Oxon Hill, Md., on June 19.

Each option brings with it a separate set of accounting ramifications—including how to determine the value of the gift, Figueredo said. But there are also tax and investing options to consider, too, he said.

To view the article summary, click here (subscription required to view full article).