Cryptocurrency and Philanthropy

Oct 25, 2021
  • Description

Despite significant volatility over its 13-year history, cryptocurrency has become a financial phenomenon—with the value of a single Bitcoin growing to an all-time high of more than $66,000 in October 2021. Cryptocurrency adoption continues to grow, despite its reputation for unpredictability.

It is increasingly common to see cryptocurrencies as an option to pay for goods and services—and yes, even charitable giving. But even as they become part of everyday transactions, many individuals, businesses, regulators and other institutions are on a learning curve as they try to keep up with the breakneck pace at which the landscape is shifting.

So, what do these trends mean for the charitable sector? And how are charitably inclined investors approaching crypto donations? Fidelity Charitable conducted a survey to address these questions. What we found shows significant knowledge gaps about charitable giving tax strategies as they relate to cryptocurrency.