Donate
Cryptocurrency
to CPB Foundation
Central Pacific Bank Foundation (CPB Foundation) now accepts donations via cryptocurrencies such as Bitcoin or Ethereum.
CPB Foundation, the philanthropic arm of Central Pacific Bank, aims to improve the quality of life for generations of Hawaii’s residents by partnering with organizations and investing in initiatives that address Hawaii’s most pressing challenges.
Many non-profits are turning to cryptocurrency as a new source of revenue because it allows for more transparency, provides stability and provides tax benefits to donors.
FAQs about Cryptocurrency Donations
WHAT IS CRYPTOCURRENCY?
Cryptocurrency is a system that allows for secure payments online which are denominated in terms of virtual “tokens.”
Cryptocurrencies work using a technology called blockchain. Blockchain is a decentralized technology spread across many computers that manages and records transactions. Part of the appeal of this technology is its security.
Created in 2009, Bitcoin is the original blockchain-based cryptocurrency but thousands of cryptocurrencies currently exist.
WHAT IS THE ENGIVEN PLATFORM?
The Engiven platform is a third party vendor that empowers nonprofit organizations to securely receive cryptocurrency donations and convert those donations into US dollars. Currently, the Engiven platform accepts 39 different cryptocurrencies.
WHAT ARE THE BENEFITS OF DONATIONS VIA CRYPTOCURRENCY?
Like stock donations, donors who transfer cryptocurrencies to a nonprofit pay no capital gains tax and can write off the full amount of the cryptocurrency donation, so the nonprofit effectively receives more money. Additionally, blockchain technology offers transparency in tracking and accounting for when money is cashed and used.
IS IT LEGAL FOR NONPROFIT ORGANIZATIONS LIKE CPB FOUNDATION TO ACCEPT CRYPTOCURRENCY DONATIONS?
Yes. Nonprofit organizations can accept a donation in the form of a cryptocurrency. In 2014, the IRS issued Notice 2014-21 explaining that virtual currency is treated as property for Federal income tax purposes. The IRS has answers to FAQs about virtual currency transactions here.
IS THE PROCESS OF GIVING CRYPTOCURRENCY SAFE AND SECURE?
As with any form of electronic payment or transaction, there are risks, however, our vendor Engiven has created certain safeguards they believe are needed to ensure that the transaction is secure. With the transfer of cryptocurrency from donor to nonprofit, Engiven believes the transaction can actually be more secure than many other forms of payment, provided certain protocols are followed: 1) By using the Engiven platform, both the nonprofit and the donor are required to undergo a simple but effective Know Your Customer (KYC) and Anti-Money Laundering (AML) screening which provides a high level of background security to ensure both parties are properly screened. 2) As with any cryptocurrency transaction, when transferring your tokens to Central Pacific Bank Foundation’s wallet to make a donation, do not expose or share your wallet’s private keys at any time.