The expansion of crypto payments in the non-profit sector has opened avenues for donors. Non-profit organizations of different shapes, sizes, and missions have seen continued success as a result of this emerging philanthropy landscape.
The expansion of the donation option has already generated results. According to the latest data compiled by prominent crypto charity platform, ‘The Giving Block,’ cryptocurrency donations are set to surpass a whopping $10 billion in the next decade.
Crypto Fundraise Forecasts
Crypto donations have played a significant role since the COVID pandemic, further gaining traction during the Russian invasion of Ukraine. While fundraising conditions were severely affected by the turbulence in the crypto market last year. 2022 was the second-best fundraising year in the history of The Giving Block.
The platform’s annual report titled “Crypto Philanthropy Data, Trends & Predictions” revealed that crypto donations in the platform reached a record level surpassing $125 million in 2022.
Taking into consideration the uptrend in donations as well as Bitcoin’s price trajectory, the crypto charity project forecasted that it could reach $1 billion by August 2027, hitting $5 billion in June 2031 and subsequently exceeding the $10 billion level in November 2032. According to the company, cryptocurrency donations continue to be a reliable source of major gifts for non-profit organizations.
“In the face of a turbulent market, several indicators showed that crypto philanthropy has strengthened its position as a reliable vehicle for charitable giving. In the coming years, we expect to see crypto philanthropy gaining more prominence in the nonprofit sector and among crypto investors, as a vehicle for both tax saving and social change.”
The most popular crypto used in donations, USDC, accounted for 44% of the volume. Donations in Ether accounted for 24%, followed by Bitcoin with 17%. Interestingly, Ethereum co-founder Vitalik Buterin was the largest donor contributing $9.4 million through his philanthropic fund, called Balvi.
The record-breaking crypto donation, processed on The Giving Block, was given to The University of Maryland to fund the research of air disinfection to prevent future pandemics.
Incentive for Donors
The report observed that the “outsized stability” in crypto philanthropy versus other crypto use cases can be attributed to the tax incentive donors in the US as well as other countries have to give using this particular donation method. Additionally, market volatility has also a part to play in the trend since it brings an abundance of opportunities for users to consider the tax benefits of making a charitable gift with their digital assets.
Despite being motivated by the powerful tax incentive to choose crypto over cash, The Giving Block also highlighted the “enthusiasm” for the role crypto philanthropy plays in the broader mainstream adoption of the asset class.
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