Fidelity Charitable Has Received Crypto Donations of More Than $100 Million

August 20, 2019 / by Crypto.IQ

Fidelity Charitable, the charity arm of Fidelity Investments, started accepting crypto donations in 2015. Last month the company revealed that they’ve received cryptocurrencies, primarily Bitcoin, worth over $106 million.

The figure has seen a dip year after year as disclosed by the company’s annual report published in July. The largest volume of donations was received to Fidelity Charitable in 2017. That was the time when Bitcoin as well as other crypto coins were reaching their all-time highs in value against the US dollar.

The company got a total of almost $69 million crypto assets during 2017. In 2018, however, the pace of these donations dropped as the cryptocurrency markets saw a slow price decline. Almost $30 million worth of crypto donations were received in 2018.

“We see cryptocurrency donations rise along with increases in the value of cryptocurrencies in the marketplace,” a Fidelity Charitable representative said. 

The tendency is thought to be quite normal, because the rise in cryptocurrency prices causes the asset holders to spend the holdings more as compared to when there’s a decline in asset prices. According to the company, it’s in relation to the falling value of the tax deductions which could be claimed by the donators. Amy Pirozzolo, the marketing head of Fidelity Charitable revealed that.

She says the investors donating their proceeds aren’t required to pay any capital gains on them. These donations can also be written off against the income tax they have to pay.

She further adds that the company even advises their clients to “give their most depreciated assets first…because it provides the best tax advantages for the donor and charity”.

That being said, when it comes to adding new assets, the company usually goes with the cryptocurrencies that are performing the best. It helps Fidelity Charitable in always “keeping their hand on the pulse” of these crypto markets.

“One thing we’re committed to is helping donors choose the most tax efficient asset to give to charity,” says Pirozzolo.

Even though Ethereum and Bitcoin remain the major cryptocurrency assets received to the company from the donators, they’ve also communicated through Twitter that they’d be accepting XRP donations as well as those in LTC and BCH.

“The majority of our contributions to date have been bitcoin, however we have also seen growing numbers of donations in ethereum,” said the company’s representative.

While the cryptocurrency markets have seen both up and down movements this year, Fidelity Charitable has not been the focus of crypto donors yet. Rather, there has been a decline in crypto donations during recent months, but Pirozzolo believes the latter half of the year is usually the most charitable period.