As the value and popularity of cryptocurrencies rapidly increase, more and more people are looking for ways to donate these digital assets to nonprofits.
According to the Pew Research Center, an industry report estimates that around 300 million individuals worldwide own cryptocurrencies, up from around 100 million in January 2021, and nearly one in three individuals aged 18-29 have cryptocurrencies. have invested.
Notably, even though older generations who are more wealthy are less likely to own digital assets, 17% of middle- and high-income earners say they have invested in or used cryptocurrencies. These two groups—the youth and the high earners—helped Fidelity Charitable grow cryptocurrency twelve-fold last year, which reported accepting $330 million in cryptocurrency donations in 2021.
Remarkably, despite all this growth in crypto philanthropy, there is evidence that charities are missing out on charities. Forty-six percent of those holding digital assets in Donor-Aided Funds (DAFs) at Fidelity Charitable said it was difficult to find charities that accept cryptocurrencies, and 44% found giving cryptocurrencies to be cumbersome.
Therefore, while some large charities such as UNICEF and the American Red Cross are finding it easy to provide the option of donating cryptocurrency, many others lack the infrastructure to accept digital asset gifts or if they provide crypto giving. If it can, it is not visible to potential donors. Some intermediaries and DAFs are working to simplify the process for both donors and nonprofits, but more will need to be done to make digital assets as simple as writing a check.
