Bitcoin investors and users have donated $22 million worth of bitcoin to a charitable trust operated by mutual fund giant Fidelity Investments in 2017.
A report says that Fidelity Charitable saw donations amounting to $11 million worth of bitcoin through the month of November.
That figure has since doubled from the start of the month.
Since the beginning of December, charitable bitcoin holders have doubled that amount.
They have now given $22 million of the cryptocurrency so far through 2017.
Fidelity does not hold cryptocurrency donations.
Instead, it processes the gifts through Coinbase.
It then deposits the cash after conversion into benefactors’ donor-advised funds.
Matt Nash, senior vice president of donor engagement at Fidelity Charitable, cited the sudden surge to the “giving season.”
The tax benefits of the donations might have helped as well, he said.
“This is giving season, after all, starting in late November and running through Dec. 31,” Nash said, adding.
“People are getting smarter about donating appreciated assets, and bitcoin is the epitome of appreciated assets this year.”
The charity utilizes Coinbase’s payment processor tools to handle bitcoin-to-dollar conversions, and the converted cash is then deposited to the patrons’ “donor-advised funds.”
The report also hints at the psychology behind the giving, as cryptocurrency holders in the U.S. are required to pay capital gains taxes when exchanging their coins for dollars.
Generally, the deduction for charitable contributions is limited to 50% of adjusted gross income.
If your gift goes past that limit, you can use the excess amount of the deduction over the course of five years.
Donating to charitable organizations, on the other hand, lets them to avoid those taxes.
The charity is accepting donations until December 22, Fidelity announced.
Overall, the growth proposes a renewed interest in the program, which Fidelity launched in November 2015.
Fidelity Charitable raised $7 million in bitcoin donations last year.
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