According to the IRS, a charitable organization that receives virtual currency (such as Bitcoin) should treat the donation as a noncash contribution. Such contributions must be reported on a Form 990-series annual return and its associated Schedule M, if applicable.
In addition, charities must file Form 8282 (Donee Information Return) if they sell, exchange, or otherwise dispose of the virtual currency within three years of the donation date. Charities also must give the original donor a copy of the form. The IRS also has advised charities to assist donors by providing contemporaneous written acknowledgments of virtual currency donations (for deductions of $250 or more) and signing Form 8283 (Noncash Charitable Contributions) for deductions of more than $5,000.
Visit the IRS FAQs on virtual currency [1] for more information.