Cryptocurrency donations to Fidelity Charitable have surged dramatically — from $49 million in 2023 to $786 million in 2024, a 14x increase[reference:0]. With Bitcoin, Ethereum, Litecoin, and Solana now accepted, donating digital assets through a donor-advised fund (DAF) has become one of the most tax-efficient ways to give[reference:1]. This practical guide walks you through everything you need to know: how it works, the tax benefits, the process, key considerations for 2025, and what to watch out for.
Fidelity Charitable is an independent public charity that operates one of the largest donor-advised fund (DAF) programs in the United States[reference:2]. A DAF is a charitable giving vehicle that allows you to make an irrevocable contribution to a public charity, receive an immediate tax deduction, and then recommend grants to your favorite IRS-qualified charities over time[reference:3].
Think of it as a charitable investment account: you contribute assets (cash, stocks, or cryptocurrency), the funds are invested for potential tax-free growth, and you can recommend grants to charities whenever you choose[reference:4]. Fidelity Charitable has helped donors support more than 433,000 nonprofits with donor-recommended grants totaling $100 billion since its inception[reference:5].
A donor-advised fund at Fidelity Charitable offers a simple, flexible, and tax-efficient way to give — and cryptocurrency is now a fully integrated part of that offering.
Fidelity Charitable currently accepts Bitcoin, Ethereum, Litecoin, and Solana[reference:11]. These are the primary cryptocurrencies eligible for contribution through the standard process. Other cryptocurrencies may be accepted on a case-by-case basis — you are encouraged to contact Fidelity Charitable directly to discuss proposed contributions[reference:12].
If you hold other digital assets not on the standard list, it is worth reaching out to Fidelity Charitable directly at 800-262-6039 to inquire about eligibility[reference:17].
Donating cryptocurrency to Fidelity Charitable involves a few key steps. The process varies slightly depending on whether your donation is under or over $5,000.
For crypto gifts under $5,000, the process is straightforward and does not require a third-party appraisal[reference:18][reference:19]. The steps are:
For crypto donations over $5,000, an independent qualified appraisal is generally required[reference:24]. This is because the IRS does not consider cryptocurrency a traditional security[reference:25]. The appraisal typically costs $500 to $600[reference:26]. You will also need to file IRS Form 8283 with your tax return[reference:27].
If you are donating cryptocurrency that is custodied at Fidelity (e.g., Fidelity crypto holdings), you may still need a third-party appraisal for donations over $5,000[reference:28]. Plan ahead and factor in the cost and logistics of an appraisal before year-end[reference:29].
From late November until the last business day of each calendar year, special guidelines may apply to ensure delivery and acceptance of contributions before the December 31 tax deadline[reference:30]. Account holders may need to initiate contributions early[reference:31]. Check the Fidelity Charitable year-end contribution guidelines for additional guidance[reference:32].
Donating appreciated cryptocurrency directly to Fidelity Charitable offers significant tax advantages compared to selling the crypto and donating the after-tax proceeds[reference:33].
For donations of appreciated assets held for more than one year, you can generally deduct up to 30% of your adjusted gross income (AGI). Any excess can be carried forward for up to five additional tax years.
Fidelity Charitable provides this illustrative example[reference:39]:
If you sell and donate the proceeds: $278,600 reaches charity.
If you donate the Bitcoin directly: $350,000 reaches charity — an additional $71,400 for the causes you care about[reference:40].
Donating appreciated crypto directly to a DAF can significantly increase the impact of your giving while reducing your tax bill — a true win-win.
Fidelity Charitable's 2025 Giving Report (covering 2024 activity) reveals remarkable growth in cryptocurrency donations[reference:41].
The tax landscape for charitable giving is evolving. The One Big Beautiful Bill Act (OBBB) became law in July 2025, introducing several provisions that affect how charitable deductions are calculated[reference:49].
| Provision | What It Means | Effective Date |
|---|---|---|
| 0.5% AGI floor on itemized charitable deductions | Itemizers can only deduct charitable contributions to the extent they exceed 0.5% of their adjusted gross income (AGI)[reference:50] | Tax year 2026[reference:51] |
| 35% cap on charitable deduction benefits | Even for those in the 37% marginal tax bracket, the tax benefit of itemized charitable deductions is capped at 35%[reference:52] | Tax year 2026[reference:53] |
| Above-the-line deduction for cash donations | Taxpayers who don't itemize can deduct up to $1,000 (single) or $2,000 (married) in cash donations to qualified charities[reference:54] | Starting 2026[reference:55] |
| 60% AGI limit on cash contributions | The 60% of AGI limitation on cash contributions to public charities is locked in[reference:56] | Extended beyond 2025[reference:57] |
Note: OBBB provisions are subject to interpretation. Always consult a tax professional for personalized advice.
Because the 0.5% AGI floor and the 35% cap take effect in tax year 2026, a gift made in 2025 can be worth more than the same gift made in 2026[reference:58][reference:59]. Donors who are considering a significant crypto donation may want to accelerate their giving to 2025 to capture the higher deduction value[reference:60].
Tax laws are complex and change frequently. The information above is based on current understanding of the OBBB and may be subject to clarification or amendment. Always consult a qualified tax professional before making any charitable contribution decisions.
Anna invested $50,000 in Bitcoin several years ago. The value has grown significantly to $350,000[reference:61]. She wants to support young entrepreneurs in her community[reference:62].
Option 1: Sell Bitcoin and donate cash
Option 2: Donate Bitcoin directly to Fidelity Charitable
Result: By donating Bitcoin directly, Anna avoids $71,400 in taxes and puts an additional $71,400 toward her philanthropic goals[reference:64]. She can recommend grants to support young entrepreneurs over multiple years[reference:65].
Lesson: Donating appreciated crypto directly to a DAF can significantly increase the impact of your giving. However, Anna needed to factor in the appraisal requirement (since her donation was over $5,000) and file Form 8283[reference:66][reference:67].
| Factor | Donate Crypto Directly | Sell Crypto, Donate Cash |
|---|---|---|
| Capital gains tax | ✅ Eliminated entirely | ❌ Up to 23.8% on gains |
| Charitable deduction | Full fair market value | After-tax proceeds only |
| Total to charity | Higher (no tax drag) | Lower (taxes reduce the gift) |
| Appraisal required (over $5,000) | ✅ Yes | ❌ No (cash is cash) |
| Form 8283 required | ✅ Yes (for gifts over $5,000) | ❌ No |
| Process complexity | Moderate | Simple |
| Best for | Donors with significant unrealized gains | Donors who prefer simplicity |
Note: This comparison is for illustrative purposes only. Individual circumstances vary. Consult a tax professional for personalized advice.
No personalized advice: This guide is for educational and informational purposes only and does not constitute financial, legal, or tax advice. Tax laws are complex, vary by jurisdiction, and change frequently. Your personal tax situation may differ significantly from any examples provided.
Appraisal requirements: For crypto donations over $5,000, you must obtain a qualified third-party appraisal[reference:83]. The cost of the appraisal ($500–$600) should be factored into your decision[reference:84].
Tax law changes: The One Big Beautiful Bill Act introduces new limitations on charitable deductions starting in tax year 2026[reference:85][reference:86]. Donors should consider the timing of their gifts carefully.
Cryptocurrency volatility: The value of cryptocurrency can fluctuate significantly. The fair market value for your deduction is determined at the time of the donation[reference:87].
Irreversible transactions: Cryptocurrency transactions are irreversible. Double-check all addresses and amounts before sending.
How to stay current: Always verify the latest information on the Fidelity Charitable official website. For tax guidance, consult the IRS website or a qualified tax professional. For the latest on the OBBB, refer to official legislative sources or trusted tax advisors.
Fidelity Charitable currently accepts Bitcoin, Ethereum, Litecoin, and Solana[reference:89]. Other cryptocurrencies may be accepted on a case-by-case basis — contact Fidelity Charitable at 800-262-6039 to inquire[reference:90].
For crypto donations under $5,000, no appraisal is required[reference:91]. For donations over $5,000, you need a qualified third-party appraisal[reference:92]. The appraisal typically costs $500 to $600[reference:93].
You eliminate capital gains tax and the Medicare surtax (up to 23.8% combined)[reference:94]. You can claim an immediate income tax deduction for the full fair market value if you itemize[reference:95]. More of your donation goes to charity rather than to taxes[reference:96].
No, there is no minimum initial contribution to open a Giving Account[reference:97][reference:98]. The minimum grant amount is $50[reference:99].
The OBBB introduces a 0.5% AGI floor on itemized charitable deductions and a 35% cap on deduction benefits, effective tax year 2026[reference:100][reference:101]. A gift made in 2025 can be worth more than the same gift made in 2026[reference:102].
Fidelity Charitable turns contributed assets into proceeds for grantmaking in an average of 65 days from acceptance to liquidity[reference:103]. However, the initial acceptance and tax receipt are typically provided soon after the blockchain confirms the transaction[reference:104].
Starting in 2026, the OBBB allows an above-the-line deduction of up to $1,000 (single) or $2,000 (married) for cash donations to qualified charities, even if you don't itemize[reference:105]. However, for noncash donations like crypto, you generally need to itemize to claim the deduction[reference:106].
If your crypto has decreased in value, it may be more tax-efficient to sell the crypto, claim the capital loss, and then donate the cash proceeds. Consult a tax professional to determine the best strategy for your situation.