Investors’ crypto donations to charity skyrocket. Why it can be ‘hugely beneficial,’ expert says

There’s soaring interest in donating cryptocurrency to charity as digital currency investors seek to maximize their tax break and impact.

“A lot of folks have begun to realize that crypto giving is hugely beneficial,” said Kyle Casserino, vice president and charitable planning consultant for Fidelity Charitable, a public charity that accepts bitcoin, ethereum and litecoin.

Bitcoin donations have surged amid the latest rally as investors learn about the tax benefits, according to Casserino.   

For 2024, Fidelity Charitable has accepted $688 million in crypto donations through Nov. 19. That’s up from $49 million in all of 2023 and $38 million in 2022, according to the organization’s 2024 giving report.

For some perspective, as of Dec. 31, 2023, Fidelity Charitable had received more than $565 million in cumulative gifts since the charity started accepting the assets in 2015.

“Most of our volume, in terms of numbers and dollars, is all in bitcoin,” Casserino said.

DAFgiving360, formerly Schwab Charitable, doesn’t release numbers for crypto donations. But the organization reported that it received 63% of contributions in non-cash assets, such as crypto and stocks, for fiscal year 2024.

Some 56% of the top 100 U.S. charities accepted crypto donations as of Jan. 2024, according to The Giving Block, a platform for digital currency gifts and fundraising.

Most taxpayers use the standard deduction on their returns, which doesn’t allow itemized tax breaks, such as charitable gifts.

But if you itemize and can claim the charitable deduction, it’s generally better to donate profitable assets, like cryptocurrency or stocks, rather than cash, according to Andrew Gordon, a tax attorney, certified public accountant and president of Gordon Law Group.

By gifting appreciated investments, you can avoid triggering capital gains taxes, which saves the donor and charity money. Generally, you can deduct the asset’s fair market value if you’ve owned it for more than one year. The cap on the tax break is 30% of your adjusted gross income for public charities.

“It’s a good strategy, especially with crypto and bitcoin at all-time highs,” Gordon said. “It’s something that we’re going to be suggesting more to people.”

The price of bitcoin was hovering around $95,000 early on Dec. 4, up by nearly 120% year-to-date, according to Coin Metrics. Bitcoin investors saw a post-election rally fueled by President-elect Donald Trump, who promised pro-crypto policy during his campaign.