Cryptocurrency charity donations surge by almost 600% in 2021
As the year comes to an end, Bitcoin donations to charity continue to flow in, with generosity extending well into the Christmas season.
According to The Giving Block, a cryptocurrency contribution and fundraising platform for NGOs and individuals, there was a 583% increase in digital asset donations in 2021 compared to 2020 on Crypto Giving Tuesday.
This year’s Crypto Giving Tuesday 2021 saw the firm’s offices in Washington, D.C. handle a total of $2.4 million in donations, with an average gift value of $12,600, an increase of 20% over the previous year.
Notably, Ethereum (ETH) has surpassed Bitcoin in terms of overall donation volume. The digital currency stayed at the top of the leaderboard, with more than $1.2 million in total donations compared to $885 million in Bitcoin.
The organization expected higher donations this year, with about 10 times as many non-governmental organizations (NGOs) expected to participate as in 2020. However, with the present worldwide pandemic and various cryptocurrencies recently experiencing minor setbacks, it was ready to confront anything.
In the end, The Giving Block was really happy with the outcomes; co-founder Pat Duffy stated:
“That day has inspired hundreds of conversations with high-net-worth donors, companies, and projects that want to make gifts. I think people who are often young and idealistic are being given transformative capital for the first time.”
According to Fidelity Charitable data, 45 percent of bitcoin owners gave $1,000 or more to charity in 2020, compared to 33 percent of all investors.
Despite the fact that cryptocurrency owners are disproportionately benevolent, the tax-savvy strategy of donating digital assets to charity is not well understood.
As many as 55% of cryptocurrency investors are unaware that bitcoin assets can be donated to charity to avoid paying capital gains tax on the asset’s sale.