Fidelity Charitable, the charitable-savings arm of Fidelity Investments, now supports bitcoin payments from donors thanks to a partnership with Coinbase.
The organization ranks as the second largest fundraiser among US nonprofits after United Way, according to the Chronicle of Philanthropy.
It was founded in 1991 by the chairman of Fidelity Investments, and has since grown to support over 210,000 charities with over $20 billion in grants, working with over 100,000 donors.
Why Ethereum Needs Layer 2 Solutions More Than EverGo to article >>
The majority of donations are in the form of capital assets such as public or private securities and real estate. Conventionally, the transfer of such assets for donations can be complicated and time consuming, hence one of the roles of Fidelity Charitable.
The donation process typically involves four parties: the donor, Fidelity Charitable, the end-recipient charity and the end recipient. Donors contribute a minimum of $5,000 to a charitable investment account, or ‘Giving Account’, in which it is managed and processed for a fee. It is then distributed to the end-recipient charities of the donor’s choice, planned according to the donor’s tax objectives.
Matt Nash, senior vice president of donor engagement for Fidelity Charitable, said the addition of a bitcoin option is another way of “making it as easy as possible for donors to support the charities they care about with the assets at their disposal,” adding, “there are many tax advantages to donating long-term appreciated assets, and that ultimately means more money to charity.”