Donating Bitcoin and other cryptocurrencies to charity
Why it can be an excellent choice
Increase your impact by donating Bitcoin or other cryptocurrency directly to charity. Compared with donating cash or selling your cryptocurrency and contributing the after-tax proceeds, you may potentially increase tax efficiency and the size of your charitable gift.
Eliminate capital gains taxes and the Medicare surtax, which combined could be up to 23.8%
Take an immediate income tax deduction in the amount of the full fair-market value* if you itemize your deductions
Maximize support to your favorite charities
*For contributions of complex or non-publicly traded assets, generally fair market value is determined by a qualified appraiser in compliance with the IRS.
Potential tax benefits of donating cryptocurrency
When you contribute Bitcoin or other cryptocurrency directly to charity, the receiving organization gains full proceeds from the sale, and you potentially eliminate capital gains exposure. This win-win could mean more money for the causes you care about. Consider this potential savings example:
Original cost of Bitcoin $50,0001
Federal long-term capital gains rate 23.8%2
Value of Bitcoin: $350,0003
Capital gains and Medicare surtax paid on $300,000 (23.8%)
Selling your Bitcoin and donating the proceeds
-$71,400
Donating your Bitcoin to Fidelity Charitable
$0
Total contribution to charity
(after deducting federal taxes)
Selling your Bitcoin and donating the proceeds
$278,600
Donating your Bitcoin to Fidelity Charitable
$350,000
Selling your Bitcoin and donating the proceeds
Donating your Bitcoin to Fidelity Charitable
Additional amount dedicated to charity
+$71,400
Fidelity Charitable currently accepts Bitcoin, Ethereum, and Litecoin.
Fidelity Charitable currently accepts Bitcoin, Ethereum, and Litecoin.
CASE STUDY
The value of Anna’s Bitcoin increased significantly since her initial investment several years ago.
Given recent market volatility, Anna wanted to leverage her digital currency for good.
By contributing her Bitcoin directly to Fidelity Charitable, she eliminated capital gains tax exposure and secured a charitable deduction based on the Bitcoin's fair market value. This savings enabled her to contribute more to her Giving Account than she would have if she sold the Bitcoin and donated the after-tax proceeds. As a result, she was able to recommend a multi-year grant to support young entrepreneurs in her community.
Added benefits of a Giving Account
- Support charities immediately or over time
- Support multiple charities with a single contribution
- Streamline recordkeeping
- Consolidate many tax receipts into one
Ready to get started?
Start making a difference today by opening a Giving Account—no minimum required.
Frequently asked questions
What kinds of cryptocurrency do you accept?
We currently accept contributions of Bitcoin, Ethereum, and Litecoin.
What are the tax benefits of donating cryptocurrency?
Generally speaking, capital gains tax is paid on realized gains when you sell your cryptocurrency. When you donate cryptocurrency directly to charity, you can potentially eliminate capital gains tax liability on the contributed asset. The donor also generally has the secondary benefit of a tax deduction for the fair market value of the asset up to 30% of adjusted gross income, assuming the donor has held the asset for more than a year prior to the contribution. Fidelity Charitable will not provide FMV for cryptocurrency donations; therefore, Donors will need to obtain an independent qualified appraisal to establish a Fair Market Value (FMV) for the asset at the time of the contribution.
What is the process for donating cryptocurrency?
To contribute certain cryptocurrencies, Fidelity Charitable requires a Cryptocurrency Letter of Understanding. Contact our Fidelity Charitable fundraising team to process the contribution as additional special handling instructions may be required. Donors must follow Fidelity Charitable’s process in order for the gift to be complete and accepted by the charity. Fidelity Charitable streamlines the gifting process from asset acceptance, receipting, and liquidating assets through select providers to fund the Giving Account. The donor will need to obtain an independent qualified appraisal to establish a Fair Market Value (FMV) at the time of the contribution for the charitable deduction. Please refer to the Cryptocurrency Letter of Understanding and Fidelity Charitable Program Guidelines for more information.
What other types of assets can I donate?
Fidelity Charitable accepts a wide range of financial assets, from cash and checks to stocks and even non-publicly traded assets.
Ready to get started?
Opening a Giving Account is fast and easy, and there is no minimum initial contribution.
Or call us at 800-262-6039
