The Rise of Crypto in Charitable Donations
The holidays have transformed into a delightful season of giving, but guess what? Crypto is crashing the party and making it even easier to donate! During Giving Tuesday 2021, over $2.4 million was raised in cryptocurrency alone—thanks to the brave pioneers at nonprofit fundraising platforms. As we cozy up to the idea of digital wallets, it’s evident that philanthropic trends are evolving.
More Cash? Who Knew?!
We’re not just talking pennies either; the co-founder of The Giving Block, Alex Wilson, hinted that last year they raised an astounding $4 million in crypto donations. Buckle your seatbelts, because he predicts a whopping $100 million in crypto donations for this upcoming year. Apparently, donating crypto can be more tax-efficient than traditional cash donations, with tax deductions galore for those who donate before year-end, making it all the more alluring!
Holiday Campaigns: Crypto Edition
With a sprinkle of cryptocurrency magic, a handful of nonprofits are launching campaigns that would make Santa himself proud. Upbring Innovation Labs kicked off the Give Big TX Crypto Fund this December, partnering with twelve Texas-based beneficiaries to affirm that Texas is not just known for barbecue, but also for crypto philanthropy!
- Organizations such as Catholic Charities and Big Brothers Big Sisters are on board.
- They plan to accept over 40 different types of cryptocurrencies!
- Proceeds are managed by The Giving Block, ensuring simple conversions to USD.
Animal Lovers Unite!
It doesn’t stop with Upbring. Pawthereum, a decentralized community that supports animal shelters, launched its 12 Days of Crypto Giving initiative, allowing donations for specific animal projects. With a hefty $25,000 raised for Muttville Senior Dog Rescue already, it’s clear the love for furry friends runs deep in the crypto world.
NFTs for the Win?!
Surprisingly, nonfungible tokens (NFTs) are getting in on the action too! The Right-Click, Give! event is a shining example, featuring an NFT auction where proceeds support Blankets of Hope, a charity providing warmth to the homeless. Co-founder Mike Fiorito notes that the vibrant NFT community has a lot of people who want to give back, making this an exciting development.
Challenges: Crypto’s Hollow Unicorns
Despite the optimistic view of crypto philanthropy, we still face some caveats. Education appears to be the biggest hurdle, especially for older nonprofits sticking to traditional finance. The challenge lies in bridging knowledge gaps to help organizations go digital without feeling like they’ve skipped to the end of the game. And let’s not forget the murky waters of NFTs in tax deductions, which are still being clarified. But hey, every new trend has its hiccups!
