Crypto and Charitable Sectors: A Force to be Reckoned With

According to the 2024 annual report from crypto charity organization The Giving Block, an increasing number of charities in the United States are accepting cryptocurrency donations. As of January 2024, 56% of the top 100 charities in the country now accept crypto donations, marking a significant shift from their initial hesitation towards adopting crypto payments. The co-founder of The Giving Block, Alex Wilson, believes that this growing adoption is driven by a greater understanding and familiarity with cryptocurrency among nonprofits. Many charities are realizing the potential of tapping into the $2 trillion donor base that cryptocurrency offers.

To make it easy for charities to accept crypto donations, The Giving Block has implemented an auto-sell feature that converts crypto into dollars at the point of donation. This simplifies the process for nonprofits and reduces their exposure to the volatility of cryptocurrency. Wilson emphasizes the importance of nonprofits working with trusted partners to navigate the complexities of crypto donations, as attempting to handle it alone often leads to difficulties.

Save the Children, a nonprofit focused on improving the lives of children worldwide, began accepting Bitcoin in 2013 after the Typhoon Haiyan hit the Philippines. Their head adviser for technology, marketing, and innovation partnerships, Ettore Rossetti, explains that there were concerns and multiple sign-offs required before they could accept crypto donations. With the necessary approvals secured within 24 hours, Save the Children has since become one of the nonprofits partnering with The Giving Block. They have seen the impact of crypto donations in supporting various programs, such as providing humanitarian assistance to children in Afghanistan and funding water and sanitation programs after earthquakes in Syria and Turkey.

While there is a growing connection between crypto and charitable giving, there are still challenges to overcome. The reputation of the crypto industry is not always favorable in the mainstream media, and some politicians, like U.S. Senator Elizabeth Warren, associate it with illicit activities. Wilson asserts that there is much less illicit activity in crypto than claimed, and that the evidence supports this. Nonprofits like Save the Children also have to consider the environmental impact of cryptocurrencies, particularly energy utilization. They strive to ensure they are mindful of the environment while acknowledging that many blockchains are powered by renewable sources or underutilized energy.

Save the Children has launched the #HODLhope campaign, which aims to raise $10 million in crypto donations by the end of 2024. They believe that blockchain technology and cryptocurrencies can be forces for good and financial inclusion. The campaign has already raised nearly $8 million in crypto donations by March 2024. For the remaining 44% of the top 100 U.S. charities that have not adopted cryptocurrency, now may be the time to consider its potential impact.