"US Charitable Organizations Increase Cryptocurrency Donations with Tax Benefits in Mind"
Summary
- According to CNBC, cryptocurrency investors are increasing cryptocurrency donations to charitable organizations with tax benefits in mind.
- Fidelity Charitable received $490 million in cryptocurrency donations in 2023, and this year it has significantly increased to $6.58 billion.
- Donors are donating cryptocurrency for tax reduction benefits, which is also evaluated as having a positive impact on charitable organizations.
On the 4th (local time), CNBC reported that "cryptocurrency investors are significantly increasing cryptocurrency donations to charitable organizations with tax benefits in mind."
Fidelity Charitable received cryptocurrency donations amounting to $380 million in 2022 and $490 million in 2023, but this year it has significantly increased to $6.58 billion.
Although DAF Giving 360 did not disclose specific figures, this year, the proportion of cryptocurrency in donations reached 63%.
According to the cryptocurrency donation platform 'The Giving Block', 56% of the top 100 US charitable organizations received cryptocurrency donations as of January this year.
The media stated, "This situation is seen as a result of cryptocurrency donations providing tax benefits," adding, "If a cryptocurrency investor donates a portion, they can avoid capital gains tax, and charitable organizations can reduce taxes by 30% or more if they hold the donated cryptocurrency for more than a year."
This is evaluated as an increasingly effective tax-saving method as cryptocurrency donations continue to rise.
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.
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