The expansion of crypto payments in the nonprofit sector has opened avenues for donors. Nonprofit organizations of varying shapes, sizes, and missions have continued to thrive as a result of this burgeoning landscape of philanthropy.
The expansion of the donation option has already borne fruit. According to the latest data compiled by well-known crypto charity platform The Giving Block, cryptocurrency donations will surpass a whopping $10 billion over the next decade.
Crypto fundraiser predictions
Crypto donations have played a significant role since the COVID pandemic and gained further importance during the Russian invasion of Ukraine. While fundraising conditions have been severely impacted by the turmoil in the crypto market over the past year. 2022 was the second best fundraising year in The Giving Block history.
The platform’s annual report, titled “Crypto Philanthropy Data, Trends & Predictions,” revealed that crypto donations on the platform hit a record high of over $125 million in 2022.
Taking into account the upward trend in donations as well as the price development of bitcoin, the crypto charity project forecast that it will reach $1 billion by August 2027, $5 billion in June 2031, and then $10 billion in November 2032 mark could exceed. According to the company, cryptocurrency donations continue to be a reliable source of important gifts for nonprofit organizations.
“In the face of a turbulent market, multiple indicators showed that crypto philanthropy has strengthened its position as a reliable vehicle for charitable giving. In the years to come, we expect crypto philanthropy to grow in importance in the non-profit 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. Ether donations accounted for 24%, followed by Bitcoin at 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 research into air disinfection to prevent future pandemics.
incentive for donors
The report noted that the “outsized stability” of crypto philanthropy compared to other crypto use cases is due to the tax incentives donors in the US and other countries are required to give using this particular giving method. Additionally, market volatility also plays a role in this trend as it offers users a wealth of opportunities to consider the tax benefits of making a charitable donation with their digital assets.
Though motivated by the strong tax incentive to choose crypto over cash, The Giving Block also highlighted the “enthusiasm” for the role crypto philanthropy is playing in the broader mainstream acceptance of the asset class.