Donate your Bitcoin/Ethereum
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
Answering Your Questions
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.
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.
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:
In Canada, donors must provide personal information for the purpose of issuing donations receipts.