
Olivia Rhye
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Donate Bitcoin, Ethereum, and other cryptocurrencies directly to NZF. We can accept cryptocurrency donations of any amount.
When paying Zakat in cryptocurrencies, one must ensure that the underlying coin or token is Shari’ah compliant.
For Shari’ah screening of cryptocurrencies and digital assets, some resources below should be beneficial:
What makes a crypto coin Shariah Compliant? By Sh Joe Bradford
My Thoughts on Crypto-assets - By Mufti Faraz Adam
NZF cannot give tax advice and strongly recommends that you consult with your tax advisors.
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.
National Zakat Foundation will liquidate the cryptocurrency donation immediately to fiat currency (USD or CAD). Upon conversion to fiat, the funds will 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.
As a registered charity in Canada, donors must provide personal information to the NZF for the purpose of issuing donations receipts, which can be used tax-deduction.
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: