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23 Apr 2024

Crypto donations in the US hit $2 billion after top charities accept digital contributions

Leading US nonprofits are increasingly accepting crypto donations, marking a significant shift in charitable giving trends, according to a BanklessTimes report.

Two out of the three top US-based charities have accumulated over $2 billion in donations since the start of the year after they began accepting crypto funds.

Tech-savvy donors

Bankless Times CEO Jonathan Merry emphasized the growing role of digital currencies in philanthropy, stating:

“Digital assets’ soaring values have spawned a new generation of wealth, keen to channel their resources into charitable causes.”

Merry added that this influx of tech-savvy donors is fueling a surge in crypto philanthropy.

Statistics reveal that 56% of America’s leading nonprofits have incorporated ‘crypto pockets’ into their donation systems, enabling direct crypto contributions.

Notably, 67.8% of these donations pass through The Giving Block, a platform that facilitates crypto donations for charities.

The Giving Block’s data highlights a dramatic increase from $125 million in 2022 to a cumulative $2 billion, reflecting growing confidence in crypto transactions within the philanthropic sector.

New sources of funding

Prominent organizations such as Save the Children, World Vision International, Water Aid US, and the American Red Cross are capitalizing on this trend.

By adopting crypto as a donation option, these charities have diversified their fundraising approaches and begun to attract a broader range of donors — allowing them to tap into new funding sources. The trend has even entered the political sphere, with some candidates accepting crypto donations for their campaigns.

However, embracing crypto also presents challenges. Charities must manage complex regulatory requirements, including compliance with know-your-client (KYC) and anti-money laundering (AML) laws.

Additionally, the digital nature of crypto increases exposure to cybersecurity threats, posing potential risks of financial loss due to cyber-attacks.

Despite these obstacles, the movement toward digital assets in the nonprofit sector is accelerating, offering donors and charities new avenues for engagement and efficient fund management. This shift is poised to redefine traditional fundraising methods and expand the impact of global charitable efforts.

The post Crypto donations in the US hit $2 billion after top charities accept digital contributions appeared first on CryptoSlate.

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