Leading US nonprofits are increasingly accepting crypto donations, marking a significant shift in charitable giving trends, according to a BanklessTimes. report.
Two of the three largest US-based charities have collected more than $2 billion in donations since the beginning of the year, after they started accepting crypto funds.
Tech-savvy donors
Bankless Times CEO Jonathan Merry highlighted the growing role of digital currencies in philanthropy, stating:
“The rising values of digital assets have created a new generation of wealth, eager to channel their resources to good causes.”
Merry added that this influx of tech-savvy donors is fueling a wave of crypto-philanthropy.
Statistics show that 56% of America’s leading nonprofits have incorporated “crypto pockets” into their donation systems, allowing for direct crypto contributions.
It is striking that 67.8% of these donations go through The Giving Block, a platform that enables crypto donations for charities.
The Giving Block data shows a dramatic increase from $125 million in 2022 to a cumulative $2 billion, reflecting the growing trust in crypto transactions within the philanthropic sector.
New sources of financing
Prominent organizations such as Save the Children, World Vision International, Water Aid US and the American Red Cross are responding to this trend.
By adopting crypto as a donation option, these charities have diversified their fundraising approach and begun to attract a wider range of donors, allowing them to tap into new sources of funding. The trend has even reached the political sphere, with some candidates accepting crypto donations for their campaigns.
However, embracing crypto also comes with challenges. Charities must manage complex regulatory requirements, including compliance with know-your-client (KYC) and anti-money laundering (AML) legislation.
Furthermore, the digital nature of crypto increases exposure to cyber threats, which poses potential risks of financial loss due to cyber attacks.
Despite these obstacles, the movement toward digital assets in the nonprofit sector is accelerating, providing donors and charities with new opportunities for engagement and efficient fund management. This shift is poised to redefine traditional fundraising methods and expand the impact of global philanthropy efforts.