Crypto philanthropy is on the rise
There has been a rise in crypto philanthropy in recent years. We’re looking at the relationship between cryptocurrency and the nonprofit sector.
Donations made in cryptocurrency herald in a new era of generosity.
The Macy’s Thanksgiving Day Parade is an annual holiday tradition that includes cartoon-character floats, pre-feast television, and, now, cryptocurrency donating. The Make-A-Wish Foundation will benefit from selling ten digital memorabilia based on historic parade balloons during this year’s event, which is the first of its kind. The shop is one of many to see the benefits of NFTs, but its efforts to spread the wealth aren’t just a passing fad. Major N.G.O.s, including UNICEF, are embracing the move and joining with crypto platforms to accept year-round digital donations, thanks to the crypto market’s 2021 spike. So let’s take a closer look at it.
- According to a new report by fidelity, in 2020, 45% of cryptocurrency holders donated $1,000 or more to charities, compared to 33% of all investors. This year, the firm’s nonprofit arm and the U.S.’s largest grantmaker, Fidelity Charitable, received around $274 million in crypto, which is nearly four times $69 million, the amount received in 2017.
- Compared to baby boomers or GenX, the millennials are more likely to invest in crypto and are inclined to more charitable causes, as per the survey report. As investors — particularly Millennials — combine their interest in digital currency with their generous principles, digital assets have the potential to become a significant source of money for charity, according to Tony Oommen of Fidelity Charitable.
- Crypto donations are accepted by major charities like the American Red Cross, Save the Children and International Animal Rescue. Many organizations, such as The Fred Hutchinson Cancer Research Center, transform crypto donations into U.S. cash immediately to finance initiatives. Others, such as GiveCrypto.com, give bitcoin straight to unbanked people in need.
- Meanwhile, blockchain technology is being used by crypto-native companies such as Endaoment, The Giving Block, and BitGive to make donating easier. The Giving Block helps over 600 NGOs set up wallets, auto-convert gifts to U.S. dollars, or just hold gifted bitcoin. At the same time, BitGive’s GiveTrack platform uses Bitcoin’s public ledger to show BTC contributors exactly how their funds are being utilized.
- This year’s Macy’s auction is only one of several charitable NFT efforts. This fall, the World Wildlife Fund in Germany launched the “Non-Fungible Animals” program to save endangered animals, while StreetCode Academy auctioned “pNFTS” (philanthropic NFTs) to aid the underserved BIPOC community members into the tech industry.
In the U.S., the total charity donated was a record of $471 billion, and nonprofits may witness big shifts as more of crypto’s almost $3 trillion market finds its way into the social sector — and not only in terms of donation quantities. Donors who have donated to organizations like Endaoment and BitGive can track down their contribution being spent as these organizations have built blockchain-native platforms offering transparency to an ambiguous process. But how will the next phase of philanthropy unfold? “The future of giving is for all of us to dream and create, built on our common desire to give back,” BitGive board member Paul J. Lamb said.