Are you a kind-hearted soul with some bitcoin to offload? Then there's good news, because Fidelity Charitable now accepts the cryptocurrency for donations.
"As more people have been using and investing in digital capital and things like bitcoin, it became more likely people would want to use their digital wallets," said Matt Nash, Fidelity Charitable's senior vice president of donor engagement. "We have a mission to make giving simple and effective."
Nash said the move was prompted in part by requests to make donations in bitcoin.
One of the attractive aspects of bitcoin can be its anonymity and the fact that it is practically impossible to trace. But, Nash said, that will not be an issue because Fidelity requires a Social Security number and registration in order to give.
"We made sure that just like we do with all our donors, our compliance and risk components are very strong, so we know who our donors are," he said.
Bitcoin is not t ied to any country, and its value often fluctuates wildly based on demand.
The virtual currency is accepted by a number of other charities, including the United Way, and can be used to make purchases at some stores.
Donors may decide to make their gifts in bitcoin, Nash said, because it may have tax benefits. In March, the IRS said bitcoin is an asset, not a currency. That means it could be subject to capital gains tax. But when an asset that has increased in value is donated to charity, Nash said, the donor can write off the value and avoid paying the extra tax.
Fidelity Charitable is the charity arm of Fidelity Investments, and has given more than $20 billion in grants since its inception, the organization said.