Crypto Philanthropy Expected to Reach $10B by 2032: Report

The expansion of cryptocurrency payments in the non-profit sector has created new opportunities for donors. As a result of this evolving philanthropic landscape, nonprofits of all shapes, sizes, and missions have found ongoing success.

The addition of the donation option has borne fruit. According to the latest data published by the famous crypto charity website ‘The Giving Block’, bitcoin donations are expected to exceed $10 billion in the next decade. Since the COVID outbreak, cryptocurrency donations have played an important role, gaining traction amid the Russian invasion of Ukraine. But the turmoil in the cryptocurrency market last year had a significant impact on the state of fundraising. 2022 was The Giving Block’s second best fundraising year in its history.

According to the company’s annual study titled “Crypto Philanthropy Statistics, Trends, and Forecasts,” crypto donations on the platform will reach $125 million by 2022. Considering the trend of increasing donations as well as the trajectory of Bitcoin’s price, the crypto charity initiative estimates that it could reach $1 billion by August 2027 , $5 billion by June 2031, and $10 billion by November 2032. According to the company, bitcoin donations are still a large, reliable source of donations for non-profit groups.

“Despite the volatile market, various indicators show that crypto philanthropy has strengthened its position as a reliable platform for philanthropic contributions.” We anticipate that crypto philanthropy will become important in the non-profit sector and among crypto investors in the coming years as a mechanism for tax savings and social impact.”

The most frequently used cryptocurrency in donations, USDC, accounts for 44% of the total volume. The contribution in Ether accounts for 24%, with Bitcoin contributing 17%. Surprisingly, Ethereum co-founder Vitalik Buterin is a top donor, donating $9.4 million through his philanthropic organization Balvi.

The University of Maryland accepted a record-breaking bitcoin donation, handled through The Giving Block, to fund air disinfection research to prevent future pandemics. According to the paper, the “great stability” in crypto philanthropy compared to other crypto use cases could be due to the tax incentives that contributors in the United States and other countries have to provide through this particular gift method. Additionally, market volatility plays into the trend as it provides multiple opportunities for consumers to assess the tax benefits of giving charitable gifts with their digital assets.

Apart from the hefty tax incentives for choosing crypto over cash, The Giving Block has also noted “enthusiasm” for the role of crypto philanthropy in the increasingly popular acceptance of asset classes.