• According to The Giving Block, charities are becoming more open to accepting cryptocurrency donations

  • According to The Giving Block, a cryptocurrency donation facilitator, non-profit charities are becoming more willing to accept cryptocurrency donations.

    The Giving Block, founded in 2018 by Alex Wilson and Pat Duffy, assists non-profit organizations in leveraging the growing philanthropy of the crypto wealthy. According to Wilson, because the pandemic harmed traditional fundraising efforts last year, several nonprofit organizations became more open to accepting cryptocurrency donations.

    The co-founder anticipates tens of millions of dollars in cryptocurrency donations this year, a modest increase from a couple hundred thousand in 2019. “This has kept some organizations going, especially last year,” Wilson said.

    Crypto holdings by a non-profit

    In 2014, the United Way Worldwide in Alexandria, Virginia, became one of the first and largest charities to accept cryptocurrencies. According to Edwin Goutier, vice president of innovation, his company had about $70,000 in Bitcoin at the time but cashed it out.

    “If we had just sold half, we would have a lot of money that we could invest in right now,” Goutier said. “At the same time, with the rules for nonprofits and all of the challenges we face in our communities, we must leverage funds right now.” So that’s how I keep from kicking myself too hard.”

    Goutier lauded The Giving Block for its approach. He credits the pair’s success to their ability to “understand both sides of the marketplace” with donors and nonprofit organizations.

    Beneficiaries of the Giving Block

    Other charities supported by The Giving Block in accepting cryptocurrency donations include Save the Children, No Kid Hungry, United Way, and the American Cancer Society. According to the company, in the last year alone, its client base has grown from 30 to more than 250.

    Wilson pointed out that the crypto wealthy can deduct their donations to non-profits or churches from their taxes. When cashing out on crypto investments, he claims that taxes can be reduced by up to 37%. Wilson also stated that many of the donors who use his services are millennials (those born between 1981 and 1996) or Generation Z. (born between 1997 to 2012).

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