Fidelity Charitable Gains Exceed Over $100 Million In Crypto Donations Due to Investor Tax Benefits
When most people look into the crypto community, they look like a group of people who seem to be self absorbed in trying to get rich quickly. However, newly released data from Fidelity investment’s charitable wing seems to suggest otherwise.
The annual report of Fidelity charitable suggests that Fidelity Charitable has nearly made over 1.3 million donor-recommended grants, totaling more than $5.2 billion. These grants were allotted to 142,000 unique organizations large and small, reaching local, national and international groups.
The report even suggests that the donor’s grantmaking activity has become twice that of what it was 10 years ago and even continues to accelerate. In 2018 alone donors established 15,000 new Giving Accounts with each user of the account having an average of 10 grant recommendations daily. Individual grants of $1 million or more grew to 582 last year, an increase of 15%.
The top charities in 2018 were Doctors Without Borders USA, American National Red Cross, and The Salvation Army. Since Fidelity Charitable began the Giving Report in 2013, education has typically held the most yearly grant dollars; religion has received the most numerous grant volumes.
After the Jobs acts and charity donor reforms of 2017, there was tax confustion for donors. Despite this donors flocked in and even increased their contribution as previously stated.
As the donors can receive an immediate tax deduction and then recommend grants over time, many are turning to donor-advised funds after tax reform. This allows them to time their charitable gifts for maximum tax savings while maintaining regular support to the charities of their choice. The charity institutes a donor-advised fund in the donor’s name and the donor can make supplementary grants at any time.
It is time for other nonprofits to start accepting crypto donations too. There are two reasons for it. To begin with, simply accepting crypto and converting to USD or “fiat” currency in the parlance of the crypto community, referring to government-issued currency, will educate nonprofits into the use and function of a technology that guarantees to become as omnipresent as the internet. The other reason is simply that there are many wealthy crypto individuals.