Fidelity Charitable is the branch of Fidelity that deals with charity. In the recent annual reports of the firm, it was revealed that the charity platform received more than 100 Million Dollars in donation since 2015. This donation was made in cryptocurrency. The exact amount of donation received is 106 million U.S Dollars.
Despite the big sum amount of donation points at the bright side, the pattern of the donation suggests otherwise. In the report, it was revealed that the number of donation has depleted over the years. Back in 2017, on the other hand, when the crypto industry was enjoying a high tide, it positively affected the donation towards the firm too. During this year, the firm received more than 69 million U.S. Dollars in donations.
Whereas, in the next year, i.e., in 2018, the firm only received 30 million U.S. Dollars. In the report, the firm said that there had been a direct connection with the growth of crypto value t the donation made t the firm. The firm still encouraged the effort of its donor by saying-
Donors adapted to the changing tides of tax reform and a volatile stock market to give generously in 2018. […] The growth of impact investing shows donors embracing new strategies to maximize the impact of their charitable dollars.
The tendency of offering donation dips when the value of the cryptos dips. It is also related to the dipping tax deduction value that can be claimed based on charity. The Fidelity Charitable started allowing cryptocurrency in the form of donation four years ago. The crypto donations served the opportunity to take advantage of the real market incentives, beyond the philanthropic side of the donation.
According to the marketing head of Fidelity Charitable- Amy Pirozzolo, the need to pay for the capital gains gets cut off when a donor donates his or her proceeds. They can easily write the donation off against the income tax. On this line of thought, the firm suggests its clients give the “most depreciated” assets, given they allow a chance of offering the best tax advantages for both the donor and Fidelity Charitable.
This acts as a mutual benefit to both the clients and the firm. On these grounds, the firm is always on a lookout for those cryptocurrencies that are really performing very well in the market. The firm goes further out there to help the clients make the wise decision in narrowing down the most beneficial crypto asset which can save them taxes too. The firm, therefore, keeps itself always updated about the developments of the crypto market in order to suggest the best pieces of advice to its clients.
In the annual report, Fidelity Charitable declared that it has started accepting Ripple’s XRP cryptocurrency. The firm has also accepted Bitcoin Cash (BCH), Litecoin (LTC) in the past. As per sources, the firm revealed that the majority of contributions till now have been in Bitcoin (BTC.) The number of Ethereum (ETH) donations has also increased in recent times. The marketing head of Fidelity Charitable is optimistic about the number of donations despite the recent dip in the donations as she said that usually, the number of donations shoot up towards the second half of the year. As per the annual report-
In a year of uncertainty related to tax reform and volatility in the markets, Fidelity Charitable granted more than 5 billion U.S. Dollars to charity. The record-breaking results of 2018 were fueled by the collective generosity of more than 200,000 donors who remain actively engaged and enthusiastic about philanthropy despite rocky economic conditions.