Crypto giving is growing exponentially. According to The Giving Block, 220 million people use cryptocurrency today, and there is about $300 million donated in the form of cryptos each year. As the crypto market grows, so do cryptocurrency donations.
Founded in 2018, The Giving Block is a crypto donation solution for nonprofits and individual donors, dedicated to unlocking the full philanthropic impact of crypto by empowering nonprofits to securely and compliantly accept cryptocurrency donations, and enabling individuals to easily give crypto to their favorite charities.
It recently announced that it is on pace to process over $100 million in cryptocurrency donations in 2021 and projects $1 billion in crypto donations to be processed in 2022. The Giving Block has led the charge in crypto giving:
- 1000% increase in individual cryptocurrency donations in 2021: The Giving Block has processed over 10,000 donations to-date from individuals, crypto projects, and other organizations.
- Over 90% of nonprofit organizations that accept cryptocurrency donations use The Giving Block: Crypto giving at 500-plus charities, foundations, universities, faith-based, and institutional organizations is now powered by The Giving Block.
- Nonprofit organizations using The Giving Block have raised an average of $50k+ in cryptocurrency donations in 2021: More nonprofit organizations than ever have added cryptocurrency donations to diversify their fundraising options and are seeing strong growth this year.
Why Donate Cryptocurrency?
The biggest incentive for donating cryptocurrency is relieving the donor’s tax burden.
The IRS classifies cryptocurrency as property for tax purposes, which means it is typically the most tax efficient way for a donor to support their favorite cause. When a donor gives crypto to a registered 501(c)(3) charity, they receive a tax deduction of the fair market value of the crypto and avoid the capital gains tax they would have incurred if they had sold the crypto and then made a donation. This means that the donor is able to donate more, as well as deduct more on their tax return – sometimes more than a 30% difference. For the nonprofit, this means that they receive more of the intended donation, rather than a portion going to the IRS.
Who is Giving Cryptocurrency?
Crypto donors are generally Millennials and Gen Z, with 43% of Millennials stating a preference for crypto investing to stocks. This means that a significant percentage of Millennials has appreciated cryptos they can donate each year for tax purposes, potentially opening a new, fast-growing donor demographic for your nonprofit organization.
Case Study: Friends of Notre-Dame de Paris & Crypto Giving
One of Faircom New York’s clients, Friends of Notre-Dame de Paris, has embraced cryptocurrency gifts. Friends of Notre-Dame de Paris is the nonprofit leading the international fundraising efforts to rebuild and restore Notre-Dame Cathedral.
In early 2020, they were approached by a donor interested in making a major donation in Bitcoin. They subsequently partnered with The Giving Block to open an account, enabling them to accept the Bitcoin gift, convert it to USD and generate a tax receipt for the donor. As per the wishes expressed by the donor, the major gift has been earmarked to support a particular element of Notre-Dame Cathedral’s restoration.
To raise the visibility of cryptocurrency giving among the Friends of Notre-Dame de Paris donor base and to encourage this type of gift, we include crypto giving pushes in their digital marketing fundraising strategy. We have also made this donation information easily accessible on their website, and Friends of Notre-Dame de Paris has a dedicated donation page on The Giving Block website.
Questions about how to incorporate cryptocurrency giving into your nonprofit’s fundraising strategy? Contact us to learn how we can help!