CPB Foundation, the philanthropic arm of Central Pacific Bank,
aims to improve the quality
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
more transparency, provides stability and provides tax benefits to donors.
Cryptocurrency is a system that allows for secure payments online which are denominated in
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.
The Engiven platform is a third party vendor that empowers nonprofit organizations to
receive cryptocurrency donations and convert those donations into
US dollars. Currently, the Engiven platform accepts 39 different cryptocurrencies.
Like stock donations, donors who transfer cryptocurrencies to a nonprofit pay no capital
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.
Yes. Nonprofit organizations can accept a donation in the form of a cryptocurrency. In 2014,
IRS issued Notice 2014-21 explaining that virtual currency is treated as property for
income tax purposes. The IRS has answers to FAQs about virtual currency transactions here.
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
With the transfer of cryptocurrency from donor to nonprofit, Engiven believes the
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
screened. 2) As with any cryptocurrency transaction, when transferring your tokens to
Pacific Bank Foundation’s wallet to make a donation, do not expose or share your wallet’s
private keys at any time.