Crypto Donations Skyrocketed In 2021 - The NonProfit Times (2024)

FAQs

Crypto Donations Skyrocketed In 2021 - The NonProfit Times? ›

On average, nonprofits received $69,644 in crypto donations in 2021, via The Giving Block, an increase of 66% from the average $44,000 in 2020.

2021: Crypto Philanthropy By The Numbers

The total donation volume on The Giving Block in 2021 was $69,644,535, an increase of 1,558% from 2020. The average crypto donation size on The Giving Block in 2021 was $10,455, an increase of 236% from the previous year.

As of January, 56% of the largest U.S. charities now accept cryptocurrency donations.

Establish crypto donation liquidation policies.

Because crypto is a volatile asset, most nonprofits prefer to immediately sell crypto donations for cash. This is the least risky way to handle donations because it prevents accounting discrepancies between the amount donated and the amount actually received.

Because donors do not pay capital gains taxes on donated cryptocurrency, investors are highly-incentivized to donate crypto to charity.

2021–2024 crash. After its peak, the crypto market began to fall with the rest of the market. By the end of 2021, Bitcoin had fallen nearly 30% from its peak down to $47,686.81, and Ethereum had fallen about 23% to $3,769.70.

The company's analysis shows that the total amount of funds lost to hackers last year decreased significantly from the $3.7 billion stolen in 2022 and the $3.3 billion stolen in 2021.

If you donated cryptocurrency worth $5,000 or less, you can report it on Schedule A of your Form 1040 tax return. If you donated cryptocurrency worth more than $5,000, you will need to complete and file Form 8283, Noncash Charitable Contributions, in addition to Schedule A.

Yes, your cryptocurrency donation is tax deductible*. Save the Children offers supporters who want to donate cryptocurrency to charity the ability to donate in a tax-efficient way. The IRS classifies cryptocurrency donations as property, meaning they are not subject to capital gains tax and are tax-deductible.

Where to ask for crypto donations? ›

The Giving Block is the #1 crypto donation solution, which provides an ecosystem for nonprofits and charities to fundraise Bitcoin and other cryptocurrencies, be found by crypto donors, receive funds instantly, and become part of a network of crypto media partners to support their missions.

Your crypto and stock donations will be charged a processing fee of 3.95% by The Giving Block.

You are allowed to put crypto (alongside other assets like real estate or stocks) inside of a CRT to take advantage of these benefits. As a quick overview, a charitable remainder trust is a tax-exempt, irrevocable trust (meaning it doesn't pay taxes) designed to reduce individuals' taxable income.

More than 90% of cryptocurrency donations during 2022 were gifts of $5,000 or more. The average crypto donation that year ($6,295) also was more than 30 times larger than the average online gift amount ($204).

Three Key Takeaways. Crypto can help combat extreme poverty by creating wealth that is donated to fund high impact interventions, and by building new systems to help drive financial inclusion and alleviate poverty.

Cryptocurrency Donations

It's possible for individuals or corporations to donate cryptocurrency investments to legitimate charitable organizations. This means that it's also possible for scammers to pose as those organizations.

In 2021, venture capitalists invested over $33 billion into crypto and blockchain startups, according to a report by Galaxy Digital.

Bitcoin hit $40,000 a week into 2021, $50,000 in February 2021 and $60,000 in March 2021. After a turbulent couple of weeks in May, it dropped to less than $34,000 before rising to another all-time high close to $69,000 in November 2021.