Fidelity Charitable, a Fidelity charity, said it has received more than $100 million in cryptocurrency donations since 2015.
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According to the annual report released by Fidelity Charitable at the end of last month, the company has received a total of $106 million in cryptocurrencies since the company first accepted this form of donation.
However, the number of cryptocurrency donations has been declining year by year.
In 2017, cryptocurrency was the fastest growing asset class accepted by the company, receiving more than $69 million in donations. The annual report shows that the growth rate of donations in 2018 slowed to $30 million.
“We see that as the value of cryptocurrencies in the market increases, cryptocurrency donations are also increasing,” said a representative of the company.
Similarly, Amy Pirozzolo, head of Fidelity's charity marketing, said that cryptocurrencies are facing a recession and that people are unlikely to sell them as charitable assets. This is related to the diminishing value of tax credits that charitable donors can apply for.
Tax benefit
Four years ago, Fidelity opened the charity to crypto assets, not only to take advantage of human charity motives, but also to take advantage of real market incentives.
According to Pirozzolo, investors do not need to pay capital gains for their cryptocurrency gains and can deduct their donations from income taxes. She said the company even “encourages” customers to “first donate the most depreciating assets… because it provides the best tax incentives for donors and charities.”
In this sense, Pirozzolo says companies often consider the best performing cryptocurrency when looking for cryptographic assets to add.
Pirozzolo said:
“We are committed to helping donors choose the most tax-efficient assets to donate to charities.”
The company is "trying to grasp the pulse of the crypto-asset market."
In the press release, Fidelity Charity also officially announced the acceptance of digital assets XRP. As early as May this year, the company announced on Twitter that it would accept XRP donations.
“So far, most of our donations are bitcoin, but we are also seeing more and more donations from ETH,” said a representative of the company. Fidelity Charity also accepts Bitcoin Cash (BCH) and Litecoin (LTC).
Pirozzolo said that although cryptocurrency donations have declined in recent months, most charitable donations have occurred in the second half of the year.
