Cryptocurrency donations are projected to soar as 2024 approaches its end. Experts in the industry anticipate this surge in contributions is largely due to an increasing number of non-profit organizations engaging in the annual initiative known as Crypto Giving Tuesday. This yearly event, coupled with the upswing in Bitcoin (BTC) and other cryptocurrency prices, primes the global community for generous giving through digital assets.
The Arrival of Crypto Giving Tuesday
Crypto Giving Tuesday, regarded as the most significant day in the world of crypto philanthropy, is upon us. The campaign aims to demonstrate the positive impact of cryptocurrency in charitable giving. The Giving Block, the organization behind this movement, has set an ambitious goal of garnering $200 million in crypto donations by the end of the year.
Ambitious Goals and Expectations
According to Pat Duffy, Co-Founder of The Giving Block, Crypto Giving Tuesday has become the most pivotal day of the year for promoting “crypto-for-good” initiatives. This year’s event, taking place on December 3—simultaneously with Giving Tuesday—marks another milestone for the initiative which has successfully taken root since its inception in 2017. Duffy emphasizes the importance of storytelling during this event, where organizations share how crypto is contributing to significant positive changes.
Looking forward to 2024, Duffy is optimistic, estimating a remarkable increase in donations compared to previous years. “We are on track to see over a 300% increase in contributions this December compared to 2023,” he states. Factors driving this growth include rising cryptocurrency values and solid tax incentives for donations. Non-profits are encouraged to leverage this unique opportunity to maximize their fundraising efforts.
Participating Non-Profit Organizations
This year marks notable participation from various non-profit organizations. For instance, the Make-A-Wish Foundation, which supports countless children in need, has collaborated with The Giving Block to enable crypto donations. Since joining forces in 2021, they’ve expanded their reach into three new countries, fulfilling over 15,000 wishes this year alone. “Wishes offer a glimmer of childhood joy during tough times,” they shared, urging crypto donors to contribute to their cause.
Moreover, Gamers Outreach, founded in 2007, is another example of an organization thriving through crypto donations. Collaborating with The Giving Block allows them to enhance the quality of life for children in hospitals around the globe by providing access to video games. Their Marketing Director, Edwin Nolasco, stated, “Our mission revolves around providing entertainment and joy to families in need, and crypto donations are vital to achieving this.”
Duffy also reported that over 1,000 non-profits are expected to participate in Crypto Giving Tuesday, including notable names like Save the Children, Feeding America, and St. Jude Children’s Research Hospital.
The Importance of Crypto Giving Tuesday
Crypto Giving Tuesday serves as a platform for organizations to easily accept donations while showcasing the power of crypto in transforming lives. Shaney Jo Darden, Founder of The Keep A Breast Foundation, has seen positive impacts from their participation over the last three years. “Each donation empowers breast cancer survivors with essential resources for their recovery,” she shared. The value of crypto donations, such as one BTC funding nearly 200 survivors, illustrates just how impactful these contributions can be.
Furthermore, Richard Zimmerman, Executive Director of Orangutan Outreach, highlighted the ability of crypto to finance crucial sanctuary projects for endangered orangutans. “Crypto enables us to fund expansive conservation efforts at unprecedented scales,” he said, illustrating the transformative possibilities enabled by digital assets.
Meme Coins Making a Difference
This year has also seen meme coins stepping up in support of charitable endeavors. “Meme coins can play a crucial role if their communities actively participate in charitable events,” Duffy noted. History has shown that strong community backing can significantly impact fundraising efforts, as illustrated by the calls to action from communities like DOGE and Bored Ape Yacht Club. “In 2024, we’re hopeful that these communities will rally together for impactful contributions,” he said.
Tax Benefits of Crypto Donations
The tax advantages associated with donating cryptocurrencies are noteworthy. Jonathan Bander, a tax strategy expert, emphasized that direct transfers of crypto assets to charities allow donors to evade capital gains taxes. This year, individuals can deduct a substantial percentage of their income when contributing crypto to charitable organizations, with the potential to offset their tax liabilities over several years.
For those looking to maximize their contributions, Charitable Remainder Trusts (CRTs) represent an appealing avenue. Bander explained that CRTs afford donors additional tax benefits while allowing their contributions to grow within the trust. Such tax efficiency presents a compelling reason for traditional organizations to engage fully in Crypto Giving Tuesday.
Christie Garton, CEO of 1,000 Dreams Fund (1DF), expressed excitement about the potential of crypto donations this year. “This initiative allows us not only to gather support but to do so in a tax-efficient manner that can greatly enhance our community impact,” she concluded.