TERMS &
DEFINITIONS

A charitable contribution of an asset -- such as Bitcoin -- that has increased in value since it was acquired. Donating appreciated assets directly to a 501(c)(3) organization typically allows the donor to deduct the full fair market value while avoiding capital gains tax on the appreciation.

A formal organizational policy stating that the nonprofit accepts, holds, and operates exclusively with Bitcoin rather than other cryptocurrencies or digital assets. Organizations with this policy signal a principled commitment to Bitcoin's monetary properties.

Bitcoin held by a nonprofit as a long-term financial reserve rather than converting it to fiat currency. Organizations maintain treasury reserves to preserve purchasing power, hedge against inflation, and demonstrate alignment with Bitcoin's monetary principles.

A public tool that allows anyone to view Bitcoin transactions, wallet balances, and block data on the blockchain. Donors and researchers use block explorers to independently verify that a nonprofit holds the Bitcoin it claims to hold.

The practice of storing Bitcoin private keys on hardware or media that is never connected to the internet, used by nonprofits and institutions to protect treasury holdings from theft or hacking.

A nonprofit organization that has publicly disclosed a Bitcoin treasury wallet address, enabling independent on-chain verification of its holdings. Confirmed holders provide the highest level of transparency to donors and researchers.

The original value of a Bitcoin holding for tax purposes, typically the price paid at the time of acquisition. Cost basis determines the capital gain or loss when Bitcoin is sold or donated.

A Bitcoin treasury arrangement in which a third-party custodian (such as a regulated exchange or institutional custody provider) holds the private keys on behalf of the nonprofit. The nonprofit does not directly control the Bitcoin.

A charitable giving account held at a sponsoring organization (such as Fidelity Charitable or Schwab Charitable) that allows donors to contribute assets -- including Bitcoin -- receive an immediate tax deduction, and recommend grants to qualifying nonprofits over time.

The price at which Bitcoin would change hands between a willing buyer and a willing seller, neither under compulsion, both having reasonable knowledge of relevant facts. The IRS requires donors to use FMV when valuing Bitcoin donations.

A formal policy governing whether and when a nonprofit converts received Bitcoin donations into fiat currency. Organizations that immediately convert to fiat are not considered Bitcoin holders; those that retain Bitcoin follow a treasury reserve policy.

An IRS tax form that donors must file when claiming a noncash charitable deduction over $500. Bitcoin donations exceeding $5,000 typically require a qualified appraisal and Section B of Form 8283.

The policies, procedures, and oversight structures a nonprofit uses to manage its Bitcoin treasury. Good governance includes board approval for treasury decisions, multi-signature key management, regular audits, and documented policies.

The absolute maximum number of Bitcoin that will ever exist: 21 million. This fixed supply is enforced by the Bitcoin protocol and cannot be changed without consensus from the network.

An event that occurs every 210,000 blocks (approximately every four years) in which the Bitcoin block subsidy is cut in half, reducing the rate at which new Bitcoin enters circulation.

A non-cash donation of property -- such as Bitcoin -- to a nonprofit organization. In-kind contributions are valued at fair market value on the date of the gift and must be properly documented for both the donor's tax records and the nonprofit's books.

An asset held to protect against the erosion of purchasing power caused by inflation. Bitcoin is increasingly held by nonprofits as an inflation hedge due to its fixed supply and historical appreciation relative to fiat currencies.

A Bitcoin wallet configuration that requires multiple private key signatures to authorize any transaction. Nonprofits use multisig to distribute custody across board members or trustees, preventing any single person from unilaterally moving treasury funds.

A Bitcoin treasury arrangement in which the nonprofit directly controls its own private keys without relying on a third-party custodian. Non-custodial setups eliminate counterparty risk but require operational discipline and secure key management.

The practice of a nonprofit organization accepting Bitcoin as a form of charitable donation. Acceptance does not imply holding -- many nonprofits accept Bitcoin but immediately convert to fiat. Organizations that retain Bitcoin are classified separately as holders.

The process of independently confirming a nonprofit's Bitcoin holdings by looking up its publicly disclosed wallet address on the blockchain. On-chain verification provides cryptographic proof of holdings that cannot be falsified.

Funds set aside by a nonprofit to cover operational expenses during periods of reduced revenue. Some organizations maintain a portion of their operating reserve in Bitcoin as a hedge against currency debasement.

A method by which an organization cryptographically demonstrates that it controls the Bitcoin it claims to hold, typically by signing a message with the private key associated with a disclosed wallet address.

A direct transfer of funds from an IRA to a qualifying nonprofit, excluded from the account holder's taxable income. Currently limited to cash -- Bitcoin held in an IRA cannot be directly transferred as a QCD without first converting to cash.

The smallest unit of Bitcoin, equal to one hundred millionth of a bitcoin (0.00000001 BTC). Named after Bitcoin's pseudonymous creator, Satoshi Nakamoto. Nonprofits accepting small donations often receive amounts denominated in satoshis.

The property of Bitcoin that makes it valuable as a store of value: only 21 million will ever exist. Scarcity is enforced by the protocol's code and cannot be altered without network-wide consensus.

The practice of a nonprofit or institution directly controlling its own Bitcoin private keys rather than delegating custody to a third party. Self-custody eliminates counterparty risk but requires robust key management procedures.

A nonprofit classification for organizations that have publicly stated they hold Bitcoin as a treasury reserve through official communications, press releases, or policy documents, but have not disclosed a verifiable on-chain wallet address.

A formal written policy adopted by a nonprofit's board of directors that governs how Bitcoin holdings are managed, including acquisition strategy, custody arrangements, conversion thresholds, and reporting requirements.

A visual indicator on a Bitcoin nonprofit directory profile that signals the level of verifiable evidence supporting an organization's Bitcoin holdings claim. Badge tiers range from on-chain verified (highest) to self-reported (lowest).

A discrete unit of Bitcoin that has been received but not yet spent. A wallet's balance is the sum of all its UTXOs. Nonprofits managing treasury holdings should understand UTXO management for efficient transaction fee planning.

A string of alphanumeric characters that serves as a destination for receiving Bitcoin. Nonprofits that publish their treasury wallet address allow donors and researchers to independently verify holdings on the blockchain.

A letter or receipt that a nonprofit must provide to donors for contributions of $250 or more, including Bitcoin donations. The acknowledgment must state the date of the contribution, a description of the property received, and whether any goods or services were provided in exchange.

The section of the U.S. Internal Revenue Code that defines tax-exempt nonprofit organizations. Donations to 501(c)(3) organizations -- including Bitcoin donations -- are generally tax-deductible for the donor.

The annual information return that most U.S. tax-exempt organizations must file with the IRS. The Form 990 is publicly available and includes financial data, governance information, and program descriptions. Bitcoin holdings may appear as investments or other assets.