Giving Back by Giving Bitcoin
Each year about 50 of my Fidelity colleagues, along with our friends and family members, come together to support the Pan-Mass Challenge (PMC). The PMC is a two-day bicycle ride for cancer research at Dana-Farber Cancer Institute. We begin at one end of Massachusetts and wind our way to the other along a 109-mile course. It seems everyone at this event, from the riders to the folks who cheer us on all along the route, come away with a passionate commitment to the cause and a deep understanding of the reason we’re all there.
Not everyone can commit to a two-day ride that requires months of training and fundraising. There are many different ways to give back. Some people share their time, some their talents, some their treasure. But now digital assets, such as bitcoin, are providing new opportunities for investors to fund their philanthropy. So how do you tap your digital wallets to do some good?
Most non-profit organizations are not yet set up to accept digital asset donations. A couple years ago, some donors to Fidelity Charitable®, a public charity that sponsors a donor-advised fund program, expressed an interest in donating bitcoin. Many were already supporting their favorite charitable causes with the donation of complex assets such as privately held securities and real estate, so why not digital assets as well?
My team helped Fidelity Charitable® develop a way for its donors to contribute bitcoin to Fidelity Charitable to fund their philanthropy. We tested and launched the functionality in 2015, and so far, Fidelity Charitable has accepted more than $22 million in bitcoin contributions.
A Digital Assets Use Case
I work in Fidelity Labs, an innovation and research group inside Fidelity Investments. We look three, five, ten years ahead to explore what is possible with emerging technologies. About four years ago, we established a blockchain incubator with a team focused on exploring blockchain technologies and digital assets.
Our exploratory work with blockchains has evolved from initial research, to employee and customer pilots, to integration with a digital wallet on Fidelity.com for customers who trade or own digital currencies.
Back in 2014 when we first got started, we weren’t specifically thinking of charitable donations, but in our discussions with Fidelity customers and clients, a need emerged and we got to work on solving it. For more on our process, read the Fidelity Labs Case Study, “Philanthropy in the Age of Bitcoin”.
Lessons Learned
The investors I’ve spoken with are pleased with the ease and efficiency of contributing bitcoin, and they have asked for the ability to contribute other digital assets in this manner. I was surprised to discover clients of all ages, and from all around the country, utilizing this functionality.
As we continue to explore and test ways to apply these innovative technologies to our businesses, our work with Fidelity Charitable remains among the most rewarding. Many of the people I meet who are investing in digital assets are always looking for ways to support charities. I’m proud to support those investors in giving back and sharing some of their bitcoin earnings with their favorite causes.
There are many different ways to give back. Some people share their time, some their talents, some their treasure. But now digital assets, such as bitcoin, are providing new opportunities for investors to fund their philanthropy.
So How Does it Work?
Fidelity Charitable uses a conversion service from a third-party provider to convert bitcoin into U.S. dollars. The proceeds of the conversion are allocated to the individual’s donor-advised fund at Fidelity Charitable.
The donor only needs to complete one charitable donation and can then support multiple charities over time. These charities benefit without needing to add a new capability to accept digital assets. Once Fidelity Charitable approves a donor’s grant recommendation, the recipient charity receives the grant by check or electronic funds transfer.
There is a great part of the Pan Mass Challenge, where after biking 50+ miles and entering a rest stop for refueling, there are pictures of the various children and those impacted by cancer who are benefiting from everyone’s efforts on the ride. It is an inspirational and touching thing to witness.
The original investors of bitcoin felt like they were changing the world, and hopefully enabling people to do good with their digital assets is one step along that path.
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Fidelity Charitable is the brand name for the Fidelity Investments® Charitable Gift Fund, an independent public charity with a donor-advised fund program. Various Fidelity companies provide services to Fidelity Charitable. Fidelity Charitable and Fidelity are registered service marks, and the Fidelity Charitable logo is a service mark, of FMR LLC, used by Fidelity Charitable under license.
Views expressed are as of December 20, 2017. Unless otherwise noted, the opinions provided are those of the author and not necessarily those of Fidelity Investments or Fidelity Labs (collectively “Fidelity”). The third parties referenced herein are independent companies and are not affiliated with Fidelity. Listing them does not suggest a recommendation or endorsement by Fidelity. Fidelity does not guarantee the accuracy of, or assume any responsibility for, any such content. 828478.1.0
