Cryptocurrency

Donate Cryptocurrencies

At NZF, we want to make it as easy as possible for you to make your donations. This is why we now accept donations of cryptocurrencies.

Receive Zakat

Donate Zakat

Various golden Bitcoins resting in front of a a stock market data graph.

donate cryptocurrency

Donate your Bitcoin/Ethereum

Donating cryptocurrency can be a convenient and efficient way to support charitable causes.

*NZF cannot give tax advice and strongly recommends that you consult with your tax advisors.

Donate cryptocurrency

Giving Your Zakat as Cryptocurrecy

For Shari’ah screening of cryptocurrencies and digital assets, check out these resources:

What makes a crypto coin Shariah Compliant? – By Sh Joe Bradford

My Thoughts on Crypto-assets – By Mufti Faraz Adam

FAQs

Answering Your Questions

For any questions or concerns, review our FAQs below or contact us.

Learn about Zakat

How much Zakat should I pay on cryptocurrencies?

Cryptocurrencies are Zakatable at their current market value, given that you reach the Nisab threshold.

E.g. You own $1000 worth of Bitcoin. This equates to a value higher than the silver Nisab. Therefore, you must pay Zakat 1 lunar year after reaching (or surpassing) the Nisab threshold. The amount of Zakat due is 2.5% of the market value.

$1000 x 2.5% = $25. Therefore $25 is the Zakat due on $1000 of BTC.

How will my cryptocurrency donation be utilized by NZF?

NZF is accepting cryptocurrency donations through Canada Helps.

Once your transfer is received in the CanadaHelps wallet, they will promptly sell your cryptocurrency donation and send you a confirmation email with your charitable tax receipt and proceeds from the sale will be disbursed to NZF.

The funds will then be utilized according to the policies of NZF. Zakat donations will go toward helping poor and needy across Canada. Sadaqah donations will support the overall work of NZF in providing education, calculation and distribution of Zakat to Muslims in Canada.

How is crypto taxed in Canada?

Cryptocurrencies are treated as “ gifts in kind” when they are donated to a charity in Canada. Canadian donors who donate to Canadian charities still pay capital gains tax on any appreciation of their cryptocurrency.

Below are some resources that should be helpful:

Can I donate my crypto anonymously?

In Canada, donors must provide personal information for the purpose of issuing donations receipts.

Still Have Questions?

If you have a question that is not answered here, please feel free to contact us for more information or read our knowledge base below.

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