Still, she said, there are many resources, like the Giving Block, that allow people to donate cryptocurrencies and to nonprofits to get them safely and with relative ease.
The number of cryptocurrency donations has increased in the case of donor-recommended funds that allow people to donate for tax purposes today and recommend charitable grants later. Among them are Fidelity Charitable, the largest donor-advised fund in the United States, with over $ 35 billion in assets, and its main competitor, Schwab Charitable, with over $ 17 billion.
Fidelity Charitable has raised $ 150 million in cryptocurrency so far this year, up from $ 28 million for full 2020 and $ 13 million in 2019, a spokesman, Stephen Austin said. “The appraised value of the cryptocurrency is driving more donors to use this asset to fund their charitable giving and increasing the average size of each contribution,” he said.
What neither Fidelity Charitable nor Schwab Charitable do is manage the cryptocurrency, which means they sell it and put marketable securities or cash in the client’s donor-recommended funds.
“In general, charities are conservative in the way they want to manage assets,” said Todd Eckler, executive director of Fiduciary Trust Charitable, a donor-advised fund that has approximately $ 250 million in assets and none Has cryptocurrency skills. “You could see the value evaporate pretty quickly. It is very volatile and does not fit well with many non-profit institutions. “
For Mr. Zeller, who helped broker the Bitcoin donation at Penn, the most important thing is the ability to accept cryptocurrencies.
“It’s very nice to have the ability to do this when a donor says, ‘I have some bitcoin,'” he said. “We can accept it now without it disrupting the university.”