Non-profit charities have become more willing to accept cryptocurrency donations, says crypto donation facilitator The Giving Block.
Founded in 2018 by Alex Wilson and Pat Duffy, The Giving Block is helping non-profit organizations leverage the increasing philanthropy from the crypto wealthy. Because the pandemic hurt traditional fundraising efforts last year, several nonprofit charities became more amenable to accepting crypto donations, according to Wilson.
The co-founder expects tens of millions in crypto donations this year, a modest rise from a couple hundred thousand in 2019. “For some organizations, especially last year, this has kept them going,” Wilson said.
Nonprofit holding crypto
One such nonprofit is the United Way Worldwide in Alexandria, Virginia, which became one of the first and largest charities to accept cryptocurrencies in 2014. According to vice president of innovation Edwin Goutier, his organization then had about $70,000 worth of Bitcoin, but then cashed it out.
“If we had just sold half, we would be sitting on a great amount of money that we could invest today,” Goutier said. “At the same time, with the rules for nonprofits and all the challenges we have in our communities, we have to leverage funds in the moment. So, that’s how I bring myself from kicking myself too hard.”
Goutier praised the approach that The Giving Block had taken. He attributes the pair’s success to being able to “understand both sides of the marketplace” with donors and nonprofit charities.
The Giving Block’s beneficiaries
Other charities that The Giving Block has supported in accepting crypto donations include Save the Children, No Kid Hungry, United Way as well as the American Cancer Society. According to the company, its client base has grown from 30 to more than 250 in the past year alone.
Wilson noted that the crypto wealthy can receive a tax deduction for their donations to nonprofits or churches. When cashing out on crypto investments, he said this could reduce taxes of up to 37%. Wilson added that many of the donors using his services are millennials (born between 1981 and 1996) or Gen Z (born between 1997 to 2012).
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