Crypto Philanthropy Expected to Reach $10 Billion by 2032: Report
The expansion of crypto payments in the nonprofit sector has opened avenues for donors. Non-profit organizations of various shapes, sizes and missions have seen continued success as a result of this new philanthropic landscape.
The extension of the donation option has already produced results. According to the latest data compiled by a prominent cryptocurrency charity platform, ‘The Giving Block’, cryptocurrency donations are set to surpass a whopping $10 billion over the next decade.
Crypto Fundraise Forecasts
Crypto donations have played a significant role since the COVID pandemic, gaining further traction during the Russian invasion of Ukraine. While fundraising conditions were heavily impacted by the turbulence 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 in the platform reached a record high exceeding $125 million in 2022.
Considering the surge in donations as well as Bitcoin’s price trajectory, the crypto charity project predicted that it could reach $1 billion by August 2027, reach $5 billion in June 2031 and then surpass the $10 billion level in November 2032. According to the company. , cryptocurrency donations continue to be a reliable source of large gifts to non-profit organizations.
“In the face of a turbulent market, several indicators showed that cryptophilanthropy has strengthened its position as a reliable vehicle for charitable giving. In the coming years, we expect to see cryptophilanthropy gain more prominence in the non-profit sector and among cryptoinvestors, 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 with 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 observed that the “outsized stability” in cryptophilanthropy versus other cases of crypto use can be attributed to the tax incentives that donors in the US as well as other countries have to provide using this particular method of donation. In addition, market volatility also has a role to play in the trend as it provides 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 is playing in the broader mainstream adoption of the asset class.
