The crypto market’s 2020-2021 surge fueled a rise in charitable giving. Major nonprofits are embracing the shift and connecting crypto platforms for digital donations.
According to Fidelity, 45% of crypto holders have donated at least $1,000 to charities in 2020 compared to 33% of investors in general. Millennials are more charitably inclined and more likely to invest in crypto than their Baby Boomer or Gen X counterparts, the survey reports. “As investors — particularly Millennials — combine their interest in digital currency with their charitable values, digital assets have the potential to become a significant source of funding for philanthropy”, Fidelity Charitable’s Tony Oommen noted.
Major foundations in the United States, and Internationally, now accept crypto donations, as they look to get a piece of crypto’s nearly $3 trillion market. However, many still instantly convert crypto gifts into U.S. dollars. NFT auctions have also been used to fund charitable organizations.
Charitable giving in the U.S. reached a record $471 billion in 2020. As more organizations build blockchain-native platforms, donors will be able to track how their contributions are being spent, offering new transparency to an often opaque process.