Last year through Fidelity Charitable, donors contributed approximately $70 million in Bitcoin and other cryptocurrencies to their preferred causes.
Fidelity Charitable received about $4.5 billion worth of donations last year. This represents an 83% year-over-year increase in new donors according to their latest report. Part of the contribution was $69 million given in the form of cryptocurrency. This represents a nearly tenfold increase from the previous year.
Disaster relief causes led the onslaught. The top three are American National Red Cross, Doctors Without Borders USA and The Salvation Army.
All the disaster relief campaigns received about $60 million worth of donations. St. Jude Children’s Research Hospital, The Nature Conservancy was also famous in the donation list. Other favorite causes include the ACLU Foundation and the American Heart Association.
Non-assets donations helped to convert full market value
Moreover, accepting Bitcoin as donations helped to transform the total value of contributions from donors, Fidelity said.
“Due to the tax efficiencies of donating non-cash assets, this uptick results in more overall dollars available for giving.”
Cryptocurrency holders in the United States can pay taxes depending on the length of time of holding.
The President of Fidelity Charitable said,
“We are now at an inflection point in philanthropy, as donor-advised funds have become more popular over the years with Americans looking at how to impact best the causes they care about the most. Donor-advised funds allow givers to take a more strategic look at how they give, while also facilitating in-the-moment granting. Fidelity Charitable is proud to be a part of that movement”.
For instance, holding it less than a year means makes it attract taxes as ordinary income. Long-term holdings attract tax at a lower capital gains rate. However, very few people declare Bitcoin wealth for taxation purposes. Precisely, only about 100 taxpayers out of 25,000 do so. Meanwhile, IRS ran a campaign to force Coinbase to submit names of its customers and another one to track down crypto cheats.
The amount of cryptocurrency donations is increasing since last year’s Bitcoin massive price increase. For instance, the amount of Bitcoin donations through Red Cross by June previous year was $2,000 for last year alone. Fidelity received $11 billion worth of Bitcoins by November for last year donations.