Crypto Philanthropy Gains Ground: Over Half of Top 100 U.S. Charities Now Accepting Digital Donations
Summary:
Cryptocurrency is becoming increasingly popular in the charity sector, with more than half of the top 100 U.S. charities now taking crypto donations, according to a 2024 annual report from The Giving Block. Education and familiarity with the crypto market, valued at $2 trillion, are credited for this shift. However, some non-profits finding difficulty navigating this new space without assistance. Save the Children, a non-profit that has been accepting Bitcoin donations since 2013, illustrates the benefits of embracing cryptocurrency. Despite facing criticisms in mainstream media and concerns about environmental impact, crypto-philanthropy continues to grow, with Save the Children planning to raise $10 million in crypto donations by 2024 to support children globally.
Charitable organizations are increasingly embracing cryptocurrency, with over half (56%) of the top 100 U.S. charities now taking crypto donations, reveals the 2024 annual report from the crypto philanthropy platform, The Giving Block. This showcases a transformation within non-profits that were once reluctant in adopting crypto transactions. As the report details, getting charities on the crypto roster was an uphill task when The Giving Block launched in 2018 but things are different now.
Giving Block co-founder Alex Wilson spoke with Cointelegraph about this shift in perspective and hinted at a future where crypto adoption is rife within the charity sector. "As the crypto market expands, it becomes impossible for non-profits to overlook the potential $2 trillion donor base it presents," he stated, attributing this change to education about and familiarity with digital currencies. He emphasized that the understanding that many people are cryptocurrency owners is pushing more non-profits to adopt crypto.
The Giving Block's primary strategy to encourage more charities is to make the path to crypto acceptance as seamless as possible. An auto-sell feature they've implemented converts cryptocurrency into regular cash at donation time. "We aim to make receiving cryptocurrency donations just as straightforward as any other donation for non-profits," added Wilson.
However, Wilson gave due warning to non-profits tempted to navigate this unfamiliar territory without expert assistance, cautioning that it usually ends poorly. He reassured that working with trusted partners simplifies and streamlines adoption.
An example of such a partnership is with Save the Children, a global children's rights organization that has been accepting Bitcoin donations since 2013 following a devastating typhoon in the Philippines. Ettore Rossetti, Advisor for Technology, Marketing, & Innovation Partnerships at Save the Children, mentioned the complex processes involved before receiving approval to accept Bitcoin donations. Despite hurdles such as environmental impact concerns, all necessary permissions were granted within a day.
Diverse programs at Save the Children have benefitted from crypto donors' generosity. They've supported the programs in Afghanistan post-U.S withdrawal, during the 2023 earthquake relief in Syria and Turkey, and also in Uganda in partnership with World of Women, to meet the educational needs of over 115,000 children and adolescents.
Despite growing acceptance, the crypto-philanthropy space still faces its own adversities, particularly with mainstream media criticisms and negative perceptions championed by figures like U.S. Senator Elizabeth Warren. Wilson expressed frustration at inaccurate data often cited against cryptocurrency, emphasizing that illicit activities are much more prevalent in the traditional economy than in the crypto space.
Save the Children, also weary of the environmental impact of proof-of-work chains like Bitcoin, continually evaluates its choices in terms of energy utilization. However, Rossetti added that a closer look reveals that the energy consumption argument against blockchain currencies is often exaggerated, with many powered by renewable or underutilized energy sources.
Save the Children's latest #HODLhope initiative seeks to garner $10 million in crypto donations by 2024 to support children globally. Raising almost $8 million until March, the campaign looks set to succeed. For the remaining 44% of the top 100 U.S. charities yet to accept cryptocurrency, this growing trend sends a strong message.
Published At
3/28/2024 4:01:00 PM
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