Donors who give virtual currency to a charitable organization will not recognize income, gain or loss from the contribution, according to IRS guidance issued in 2014. On the FAQ page of its website, the IRS explains how to calculate the value of a gift of virtual currency to a charity.
The FAQ page also addresses the charity’s responsibilities for gifts of virtual currency donations. Typically, charitable organizations should provide a contemporaneous written acknowledgment for donations of more than $250; that remains true for virtual currency donations.