The expansion of crypto payments in the non-profit sector has paved the way for donors. Nonprofit organizations of all shapes, sizes, and missions have seen continued success as a result of this emerging philanthropic landscape.
Expanding the donation option has already produced results. According to the latest data compiled by prominent cryptocurrency charity platform ‘The Giving Block’, cryptocurrency donations will exceed a whopping $10 billion in the next decade.
Crypto Fundraising Forecasts
Crypto donations have played an important role since the COVID pandemic, gaining even more traction during the Russian invasion of Ukraine. While fundraising conditions were severely affected by the turmoil in the crypto market last year. 2022 was the second best fundraising year in The Giving Block’s history.
platform annual report titled “Crypto Philanthropy Data, Trends & Predictions” revealed that cryptocurrency donations on the platform reached a record level exceeding $125 million in 2022.
Taking into account the upward trend in donations, as well as the trajectory of Bitcoin’s price, the crypto charity project forecast that it could reach $1 billion by August 2027, reach $5 billion by June 2031, and subsequently exceed the level of $10 billion in November 2032. According to the company, cryptocurrency donations continue to be a trusted source of significant gifts for nonprofit organizations.
“In the face of a turbulent market, several indicators showed that cryptophilanthropy has strengthened its position as a trusted vehicle for charitable giving. In the coming years, we hope to see cryptophilanthropy gain more prominence in the nonprofit sector and among crypto investors, as a vehicle for both tax savings 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 at 17%. Interestingly, Ethereum co-founder Vitalik Buterin was the biggest donor contributing $9.4 million through his philanthropic fund, called Balvi.
The record crypto donation, processed in The Giving Block, was given to the University of Maryland to fund research into air disinfection to prevent future pandemics.
Donor Incentive
The report noted that the “outsized stability” in cryptophilanthropy versus other crypto use cases can be attributed to the tax incentives that donors in the US and other countries have to give using this particular donation method. In addition, market volatility also has a role to play in the trend as it provides plenty of opportunities for users to consider the tax benefits of making a charitable donation with their digital assets.
Despite being motivated by the powerful tax incentive to choose crypto over cash, The Giving Block also highlighted “enthusiasm” for the role cryptophilanthropy plays in the broader mainstream adoption of the asset class.
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