As we move further into the 2020s, the world of philanthropy is evolving, and cryptocurrencies are playing an increasingly significant role in shaping the future of charitable giving. For nonprofits, 2024 presents a unique opportunity to tap into the growing crypto donor base and secure their organization’s financial future. We interviewed Pat Duffy from The Giving Block about their 2024 Crypto Philanthropy Trends Report and this is what we learned…
Here’s why now is the right time for nonprofits to embrace cryptocurrency donations.
- Crypto market recovery and institutional adoption
The recent recovery of the crypto market, coupled with increased institutional adoption and the emergence of cryptocurrency ETFs, has created a more stable and mainstream environment for crypto philanthropy. As more individuals and institutions invest in cryptocurrencies, the potential donor pool for nonprofits expands, making it crucial for organizations to provide easy and accessible ways to give using digital assets. - Changing donor demographics
Cryptocurrency users span multiple generations, with Gen Z, Millennials, and Gen X being the most active. These donors tend to have higher incomes and are more likely to give larger donations compared to traditional donors. By engaging with crypto donors now, nonprofits can cultivate long-term relationships with these generous individuals and benefit from their growing wealth over time. - Tax benefits for donors
Donating appreciated cryptocurrency directly to nonprofits allows donors to avoid capital gains taxes while still receiving a tax deduction. Educating donors about these tax benefits can encourage larger gifts and help nonprofits tap into the growing crypto wealth. As more donors become aware of these advantages, nonprofits that accept crypto donations will be better positioned to attract and retain these savvy philanthropists. - Preparing for the great wealth transfer
With an estimated $83 trillion expected to be passed down to younger generations through the great wealth transfer, nonprofits must adapt to the changing giving preferences of these future donors. As younger generations are more likely to invest in cryptocurrencies, nonprofits that establish themselves as crypto-friendly now will be well-positioned to benefit from this massive shift in wealth. - Standing out in a competitive landscape
As the number of nonprofits accepting cryptocurrency donations grows, organizations that embrace this giving method early will have a competitive advantage in attracting crypto donors. By providing a seamless and easily accessible way to give using digital assets, nonprofits can differentiate themselves and build trust with the crypto community, leading to increased support and long-term sustainability.
To seize the crypto opportunity in 2024, nonprofits should take the following steps:
- Partner with reputable crypto donation platforms like The Giving Block to ensure a secure and user-friendly giving experience.
- Educate staff and stakeholders about the benefits and risks of accepting cryptocurrency donations.
- Promote crypto giving options across all fundraising channels, including websites, social media, and email communications.
- Engage with the crypto community through targeted outreach and participation in relevant events and discussions.
As the world of philanthropy continues to evolve, nonprofits that embrace cryptocurrency donations will be better equipped to navigate the changing landscape and secure their financial future. By taking action now, organizations can position themselves at the forefront of this exciting new era of charitable giving and make a lasting impact on the causes they support.
