Spreading holiday joy through charitable giving with cryptocurrency

Holidays are a great time to give back. The rise of cryptocurrency has opened up even more avenues for charitable initiatives. This was evident during Giving Tuesday 2021 (the Tuesday after Thanksgiving), which saw more than $2.4 million in cryptocurrency raised by The Giving Block, a nonprofit fundraising platform.

Some in the crypto industry believe that the number of crypto donations will continue to rise as crypto philanthropy is becoming a new sector within the cryptocurrency economy. Alex Wilson, cofounder of The Giving Block told Cointelegraph last year that the organization raised approximately $4 million in cryptocurrency donations. He also stated that it expects to receive over $100 million this year in crypto donations.

Wilson says that crypto donations are more tax-efficient than fiat donations. Anyone who donates prior to December 31 can claim a deduction for 2021. This is a great way for you to offset some gains.” Wilson said that more than 1,000 charities accept cryptocurrency donations through The Giving Block. These include Save the Children, United Way, and St. Jude. We expect to see a lot more partnerships next year and our growth will accelerate. We estimate that we will process almost $1 billion in donations next fiscal year, and work with more than 6,000 nonprofits.

Holiday cryptocurrency campaign

Many nonprofits are now accepting crypto donations. However, this holiday season is also seeing campaigns that focus on cryptocurrency philanthropy.

Upbring Innovation Labs, a Texas-based company that aims to improve technology in the nonprofit sector, launched the Give Big TX Crypto Fund in December. Ryan Park, Upbring’s vice president of innovation, explained to Cointelegraph that the fund was a joint cryptocurrency campaign with 12 Texas-based nonprofits.

This can be thought of as a “cause fund.” The goal is to make Texas a better state. It’s also about showing non-profits they can adopt Web 3.0 technologies. Overall, the goal is for Texas to be a leader in cryptophilanthropy.

Park said that the Give Big TX Crypto campaign partners with eight organizations, including Big Brothers Big Sisters Lonestar and Austin Pets Alive. Park also mentioned that Texas Blockchain Council (a 501 C(6) organization) is part of the initiative due to its involvement in blockchain development in Texas’ various industries.

Upbring’s senior innovation program strategist Kelsey Driscoll told Cointelegraph that they will accept donations in over 40 cryptocurrencies through December 31. All of which are supported by The Giving Block. She noted that “When donations are made, The Giving Block automatically transforms them into United States dollars. So accepting crypto has been as simple as accepting fiat donations. Driscoll also stated that the subreddit group r/Bitcoin would match Bitcoin (BTC), donations made to any charity supported by The Giving Block.

Pawthereum is a community-run decentralized project that supports animal shelters. This month, Pawthereum launched a charitable cryptocurrency crowdfunding campaign. John Weathers, Pawthereum’s community manager, explained to Cointelegraph that the 12 Days of Crypto Giving campaign allows crypto donations for specific projects that aid animals in need. Pawthereum was forked from the Grumpy Cat Coin meme cryptocurrency project, which raised $70,000 for the Sterling Animal Shelter in Massachusetts.

Pawthereum recently raised $25,000 via crypto donations for Muttville Senior Dog Rescue in San Francisco. Muttville Senior Dog Rescue is an animal shelter that cares for special-need dogs. Weathers estimates that close to $400,000 in crypto has been donated to Muttville Senior Dog Rescue since December 14.

Related: Is crypto a boys club? Financial future is not gendered

This year, nonfungible tokens (or NFTs) are being used for donations. This sector is hosting one of the biggest crypto charity events, due to the fact that NFTs sales are expected to grow by $17.7billion by 2021. This auction, known as Right-Click!, is open to all and hosted by Opensea, an NFT platform. The auction was open until Dec. 24, with all proceeds going to Blankets of Hope. This charity provides warmth for homeless people and teaches kindness to children at school.

Co-founder of Blankets Of Hope, Mike Fiorito told Cointelegraph that he was an avid NFT collector and is aware of the welcoming nature of the NFT community as a whole. He believes there will be more NFT-focused charities. He said that there are many kind people working in the NFT sector who are making fortunes, no matter how small or large, and are eager to give back.

Park also mentioned that the Give Big TX Crypto campaign allows NFT artists direct collaboration with nonprofits in order to donate profits from nonfungible token minting. “Many NFT artists are interested in working with nonprofits. Two NFT projects have donated their mints to our fund.

Are charitable crypto campaigns going mainstream?

Even though there are only a few charitable crypto campaigns, the potential benefits of cryptocurrency donations could lead to mainstream adoption.

U.S. donors are not required to pay capital gains tax on crypto assets that they donate to registered nonprofits. However, there are other technological benefits. Nawzad, a Pawthereum community leader, said that crypto donations are more transparent than fiat due to the blockchain network’s speed and transaction speeds.

Statistic from The Giving Block also showed that cryptocurrency donors might be more willing to donate to charity. The Giving Block’s average cryptocurrency donation is $11,000. Giving USA data showed that the average donation to charity in 2020 was $737.

Although the benefits are obvious to some, adoption seems to be hindered by education. Park shared that Texas has become one of the largest crypto capitals in America due to its openness to blockchain and mining power capabilities. However, it is still difficult to get Texas nonprofits to join the Give Big TX campaign.

“We reached out at least 60 non-profits and have partnered with twelve total. Although it seems like this partnership would be a no-brainer, there are still many steps to take in educating the public about the potential benefits of crypto philanthropy.

NFTs can be seen as ideal assets for donation, but there are uncertainties about tax deductions. Fiorito stated that he is still trying determine whether donating NFTs can be tax-deductible. Fiorito commented that it was a confusing area as we are still early in the NFT space. This uncertainty is why the Right-Click! Give! Auction accepts cryptocurrency donations via The Giving Block.

Related: Biggest NFT sales and drops in 2021

It’s clear that cryptocurrency philanthropy has opened new doors for a generation of people who are eager to give back, despite the challenges. Park pointed out, for example, that many of the donors to the Give Big TX Crypto campaign are over 70 years old. Wilson stated that the average age for crypto users is 38 according to statistics from The Giving Block.

“The people donating here live and breathe Web 3.0, or have held crypto for a while. This is a big part of the effort to educate people about this opportunity.

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Eileen Wilson

Eileen Wilson –Technology and Energy My Name is Eileen Wilson with more than 5 years of experience in the Stock market industry, I am energetic about Technology news, started my career as an author then, later climbing my way up towards success into senior positions. I can consider myself as the backbone behind the success and growth of topmagazinewire.com with a dream to expand the reach out of the industry on a global scale. I am also a contributor and an editor of the Technology and Energy category. I experienced a critical analysis of companies and extracted the most noteworthy information for our vibrant investor network.

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