Understanding the Growth of Cryptocurrency Donations

Fidelity Charitable has recently published its “2019 Giving Report,” revealing a striking $100 million in cryptocurrency donations since it added digital currency to its donation portfolio. This news makes one wonder: Are we witnessing a philanthropic revolution, or just another tech trend with a flashy name?

The Surge in Donor Engagement

In 2018 alone, Fidelity saw a remarkable climb in its donor count, hitting over 204,000 contributors. To put this in perspective, back in 2009, there were just about 51,918 accounts. This leap isn’t just numbers; it’s a testament to the evolving landscape of charitable giving. With the world going digital, it appears that giving is going the same route.

Capital Gains Taxes: The Silver Lining

Now let’s talk about money—specifically, the kind that could’ve otherwise slipped through your fingers in taxes. When donating cryptocurrency, donors can sidestep capital gains taxes, which can feel like a win-win situation. Fidelity Charitable highlighted that although the value of cryptocurrency took a nosedive at the end of 2018, the year started on a superb note. Donors could transfer their digital assets at a fair market value, allowing charities to benefit maximally.

A Closer Look at the Numbers

1. In 2015, Fidelity began accepting cryptocurrency.
2. By 2018, the total crypto donations amounted to $106 million.
3. A record $69 million came from donations in 2017 alone.
4. Donations in 2016 were significantly lower at just $7 million.

The Global Crypto Philanthropy Movement

Fidelity isn’t alone in this digital donation world. Organizations worldwide are hopping on the crypto bandwagon, making philanthropy more tech-savvy. For instance, South Korean company SK C&C is rolling out a donation platform based on a Ripple blockchain fork. They’re not just stopping at crypto; they plan to introduce a stablecoin linked directly to the won.

Innovative Campaigns Making Waves

We also have the “Airdrop Venezuela” campaign, which has garnered quite a bit of attention. With around 60,000 verified beneficiaries, they’ve successfully raised $272,000 since its inception in late 2018. That’s a heartwarming example of how technology is enabling altruism on a global scale.

The Future of Charitable Giving

So what does all this mean like, for the future of giving? The trend suggests that cryptocurrency donations could become a cornerstone of charitable contributions. From tax advantages to an increase in donor engagement, the potential benefits are enough to make any philanthropic organization raise an eyebrow. As cryptocurrency gains mainstream acceptance, we might just be at the forefront of a transformational era in philanthropy. No pressure, non-profits!