According to Fidelity Charitable, the charitable arm of Fidelity, they have received over $100 million in crypto donations thus far. About $106 million in crypto has been given to Fidelity Charitable since it started accepting crypto donations in 2015. This claim was backed up by Fidelity’s annual report that was released a month ago.
Dropping Crypto Donations
The report shows that crypto donations to the organization have dropped year over year. For instance, the organization received $69 million in crypto donations in 2017. In 2018, the company received $30 million, which was less than half of what they got in 2017.
A company representative said that the firm’s crypto donations increased when the market cap of the crypto industry grew. According to the head of marketing at the charitable organization, since the crypto market was facing a downturn, people were less likely to donate their holdings. The reason for this, according to him, is that people would claim lower tax deductions when they made crypto donations.
The Tax Advantage
When the company began accepting crypto donations, they were trying to capitalize on the philanthropic nature of humans as well as tax incentives. When an investor makes donations in crypto, they are not required to pay capital gains. Additionally, they are allowed to write off these donations when filing tax returns. The charity organization usually encourages donors to give away crypto assets that have depreciated the most since they offer the most tax benefits for both the charity and donor.
How they identify Coins
When picking a coin to add, they usually look to the top crypto assets. The charity organization began to accept XRP in May. Most of the donations to the firm are still in Bitcoin. However, the firm has also seen growing donations in Ethereum. Besides ETH, BTC, and XRP, the company also accepts Litecoin and Bitcoin Cash. While donations in crypto were falling, a representative of the organization said that most donations to the firm usually took place in H2 of each year.