A recent report has highlighted the expansion of cryptocurrencies in the non-profit sector has been increasing in recent times. The non-profit organizations irrespective of their sizes, visions, and locations have continued to record success in receiving donations in crypto assets.
According to the latest data compiled by the Giving Block, a prominent crypto charity platform, the expansion of the donation option has already generated results. In its annual report titled “Crypto Philanthropy Data, Trends & Predictions,” the platform revealed that crypto donations via the application touched a record level crossing $125 million in 2022.
Notably, cryptocurrency donations are anticipated to surpass a whopping $10 billion in the next decade. Sources reveal that crypto donations have played a vital role since the COVID pandemic and then gained subsequent attention during the Russian invasion of Ukraine.
Even though the fundraising in crypto was severely affected by the happenings in the sector last year, 2022 was the second-best fundraising year in the history of The Giving Block.
In the context of the surge in donations as well as keeping in picture Bitcoin’s price format, the crypto charity project has expected that it could reach $1 billion by August 2027. Further, it predicted the price to hit $5 billion in June 2031 and subsequently exceed the $10 billion level in November 2032.
According to the company, cryptocurrency donations continue to be a reliable source of major gifts for non-profit organizations. It noted:
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 to see crypto philanthropy gaining more prominence in the nonprofit sector and among crypto investors, as a vehicle for both tax saving and social change.
Notably, the most popular crypto used in donations was found to be USDC which accounted for 44% of the total volume. USDC was followed by donations in Ethereum which accounted for 24% and Bitcoin which covered almost 17% of the total volume.
Interestingly, Vitalik Buterin, co-founder of Ethereum was the largest donor contributing $9.4 million through his philanthropic fund. The record-breaking crypto donation, processed on the platform was given to The University of Maryland to fund the research of air disinfection to potentially prevent future pandemics.
The charity project’s report also observed the “outsized stability” in crypto philanthropy versus other crypto use cases that can be implied to the tax incentive donors have to give using this particular donation method. In addition, market volatility has also a part to play in the trend since it brings an abundance of opportunities for users to consider the tax benefits of making a charitable gift with their digital assets.
Despite being motivated by the powerful tax incentive to choose crypto over cash, The Giving Block also highlighted the “enthusiasm” for the role crypto philanthropy plays in the broader mainstream adoption of the asset class.
The crypto community has been generously coming ahead to help those in need. In February, data suggested that the number of crypto donations for war-stricken Ukraine is still increasing. According to a report, as of February, almost $70 million in crypto donations had been pledged in support of Ukraine.
In August last year, Vice Prime Minister of Ukraine Mykhailo Fedorov revealed the expenses that were covered using the $54 million of cryptocurrency donations. The most expensive item was an unmanned aerial vehicle (or drone), costing $11.8 million. Following that, the nation spent $5.7 million on computer hardware and software and $6.9 million on armored vests.