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Crypto Philanthropy is Expected to Hit $10B by 2032: Report

Crypto Philanthropy is Expected to Hit $10B by 2032: Report

The expansion of crypto payments in the non-profit sector has provided donors with new opportunities. Non-profit organizations, of various sizes and missions, have experienced continued success as a result of this emerging philanthropy landscape.

Cryptocurrency donations have already led to successful outcomes. According to data recently compiled by the well-known crypto charity platform, ‘The Giving Block,’ cryptocurrency donations are projected to exceed a staggering $10 billion in the next ten years.

Crypto Fundraise Predictions

Crypto donations have played a significant role during the COVID pandemic and gained further traction during the Russian invasion of Ukraine. Although fundraising was impacted by the turbulence in the crypto market last year, 2022 was the second-best fundraising year in The Giving Block’s history.

The platform’s annual report, titled “Crypto Philanthropy Data, Trends & Predictions,” revealed that crypto donations through the platform reached a record level, exceeding $125 million in 2022.

Based on the upward trend in donations and Bitcoin’s price trajectory, the crypto charity project forecasted that it could reach $1 billion by August 2027, hitting $5 billion in June 2031, and exceed the $10 billion level in November 2032. According to the company, cryptocurrency donations continue to be relied upon as a major source of gifts for non-profit organizations.

“In the face of a turbulent market, several indicators showed that crypto philanthropy has strengthened its position as a reliable vehicle for charitable giving. In the coming years, we expect to see crypto philanthropy gaining more prominence in the nonprofit sector and among crypto investors, as a vehicle for both tax saving and social change.”

The most popular crypto used in donations is USDC, accounting for 44% of the volume. Donations made in Ether accounted for 24%, followed by Bitcoin, which accounted for 17%. Interestingly, Ethereum co-founder Vitalik Buterin was the largest donor, contributing $9.4 million through his philanthropic fund called Balvi.

The Giving Block processed a record-breaking crypto donation, which was given to the University of Maryland to fund research on air disinfection to prevent future pandemics.

Incentives for Donors

The report observed that the “outsized stability” in crypto philanthropy versus other crypto use cases can be attributed to the tax incentives donors receive in the US and other countries for using this particular donation method. Additionally, market volatility has also played a part in the trend, given that it presents various opportunities for users to consider the tax benefits of making a charitable gift with their digital assets.

Although motivated by the tax incentives, The Giving Block also highlighted the “enthusiasm” for the role crypto philanthropy plays in the broader mainstream adoption of the asset class.