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Crypto Philanthropy Expected to Reach $10 Billion by 2032: Report
The expansion of crypto payments in the nonprofit sector has opened avenues for donors. Nonprofit organizations of various shapes, sizes, and missions are experiencing continued success as a result of this emerging philanthropy landscape. The expansion of the donation option has already borne fruit. According to the latest data compiled by popular crypto charity platform “The Giving Block,” cryptocurrency donations will exceed a whopping $10 billion over the next decade. Crypto Fundraising Predictions Crypto donations have played a significant role since the COVID pandemic and have become even more important during the Russian invasion of Ukraine. While fundraising conditions were severely impacted by the turmoil in the crypto market last year...
Crypto Philanthropy Expected to Reach $10 Billion by 2032: Report
The expansion of crypto payments in the nonprofit sector has opened avenues for donors. Nonprofit organizations of various shapes, sizes, and missions are experiencing continued success as a result of this emerging philanthropy landscape.
The expansion of the donation option has already borne fruit. According to the latest data compiled by popular crypto charity platform “The Giving Block,” cryptocurrency donations will exceed a whopping $10 billion over the next decade.
Crypto Fundraiser Predictions
Crypto donations have played a significant role since the COVID pandemic and have become even more important during the Russian invasion of Ukraine. While fundraising conditions were severely impacted by the turmoil in the crypto market last year. 2022 was the second best fundraising year in The Giving Block's history.
The platform’s annual report titled “Crypto Philanthropy Data, Trends & Predictions” revealed that crypto donations on the platform reached a record level of over $125 million in 2022.
Taking into account the upward trend in donations as well as the price movement of Bitcoin, the crypto charity project predicted that it could reach $1 billion by August 2027, reach $5 billion in June 2031, and subsequently cross the $10 billion mark in November 2032. 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, several indicators showed that crypto philanthropy has strengthened its position as a reliable vehicle for charitable giving. In the coming years, we expect crypto philanthropy to gain traction 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 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 that donors in the US and other countries are required to give using this particular donation method. Additionally, market volatility also plays a role in this trend as it provides users with a plethora of opportunities to consider the tax benefits of making a charitable donation using their digital assets.
Although The Giving Block was motivated by the strong tax incentive to choose crypto over cash, it also highlighted the “enthusiasm” for the role crypto philanthropy plays in broader mainstream adoption of the asset class.