The expansion of cryptocurrency payments in the non-profit sector has created new opportunities for donors. As a result of this expanding philanthropic landscape, non-profit organizations of various shapes, sizes, and missions have found sustained success.
The addition of a donation option has already produced results. According to the most recent data published by famous crypto charity site ‘The Giving Block,’ bitcoin donations are expected to exceed $10 billion in the next decade. Since the COVID outbreak, cryptocurrency donations have played an important role, gaining traction amid Russia’s invasion of Ukraine. However the turmoil in the cryptocurrency market last year had a significant impact on fundraising conditions. 2022 was The Giving Block’s second-best fundraising year in its history.
According to the company’s annual study titled “Crypto Philanthropy Statistics, Trends, and Forecasts,” crypto donations on the platform will top $125 million in 2022. Taking into account the upward tendency in donations as well as Bitcoin’s price trajectory, the crypto charity initiative predicted that it may reach $1 billion by August 2027, $5 billion in June 2031, and $10 billion in November 2032. According to the firm, bitcoin donations are still a dependable source of large donations for non-profit groups.
“Despite a volatile market, multiple indicators showed that crypto philanthropy has strengthened its position as a dependable platform for philanthropic contributions.” We anticipate that crypto philanthropy will acquire importance in the nonprofit sector and among crypto investors in the coming years as a mechanism for both tax savings and social impact.”
The most often utilized cryptocurrency in donations, USDC, accounted for 44% of the total volume. Contributions in Ether accounted for 24%, with Bitcoin accounting for 17%. Surprisingly, Ethereum co-founder Vitalik Buterin was the top donor, donating $9.4 million through his Balvi philanthropic organization.
The University of Maryland received the record-breaking bitcoin donation, which was handled through The Giving Block, to fund research into air disinfection to prevent future pandemics. According to the paper, the “outsized stability” in crypto philanthropy compared to other crypto use cases can be due to the tax incentives that contributors in the United States and other nations have to give through this specific gift method. Furthermore, market volatility plays a role in the trend because it provides a plethora of opportunities for consumers to assess the tax benefits of making a charitable gift with their digital assets.
Despite the substantial tax incentive to pick crypto over cash, The Giving Block also noted “enthusiasm” for the role crypto philanthropy plays in the asset class’s increasing popular acceptance.