How to Find Charities that Accept Crypto Donations
Crypto donations help you achieve two goals at once: support charitable causes and lighten your tax burden. These attractive benefits are why more and more people are involved in crypto philanthropy.
In the last few years, several examples of massive crypto gifts made to nonprofits include big-name celebrities, like Ethereum co-founder Vitalik Buterin’s gift of trillions in crypto coins SHIB, AKITA, and ELON. Consequently, more and more charities have pivoted to embrace crypto giving.
Yet it can still be difficult to locate and connect with those charities today. Navigating the world of crypto charity and finding charities that accept crypto can be challenging to say the least.
To help you in this worthwhile process, this guide will explain everything you need to know about crypto charity projects.
Why donate crypto to charity?
Cryptocurrency, or crypto, refers to a growing world of digital currency that can be used in transactions, investments, and — yes — donations.
After 2021’s massive year in crypto, the market reached a total value of over $3 trillion. For those who saw their portfolio grow, donating crypto was a smart way to get around paying capital gains taxes on their profitable assets.
The tax advantage of making charitable donations in crypto instead of cash or fiat currency is that you don’t have to pay capital gains on that crypto like you usually would. So you can support causes you care about while minimizing your tax burden at the same time. Additionally, if you use a crypto donation tool like Crypto for Charity, you can donate without paying any processing fees, so it’s also cheaper to make the donation compared to other options.
For all these reasons, according to Fidelity Charitable, there was a five-fold increase in digital currency philanthropy from 2020 to 2021. Crypto donations placed into donor-advised funds offered by Fidelity Charity doubled from $13 million in 2019 to $28 million in 2020. And by November 2021, that number had skyrocketed more than 460% to $158 million.
Furthermore, big crypto gifts have been popular among savvy investors. Data shows that crypto investors tend to be more charitable than the average investor. Fidelity Charitable found in a study that 45% of crypto investors donated at least $1,000 to charity in 2020. In comparison, just 33% of the overall investor population donated $1,000 or more to charity.
What crypto charity projects exist?
While the reasons for donating in crypto are clear, it can be harder to locate nonprofits that accept crypto. Why? 90% of nonprofits today don’t have a solution to accept crypto as a result of the various logistical challenges that come with accepting a relatively new form of currency, like lacking the technical expertise, in-house capacity, or exchange accounts needed to manage crypto donations.
If you’re interested in making a crypto gift, it’s important to know your options in terms of crypto charity projects. For instance, did you know you can even donate an NFT to a nonprofit? The emerging world of NFT philanthropy consists of donating the proceeds of your NFT drop, offering an NFT collection to benefit a cause, and yes, even donating the token itself. You can learn more here.
Thankfully, there’s a tool on the market today that simplifies this process for you and makes it easy to donate fee-free to your favorite nonprofit and make a real difference.
Crypto for Charity makes crypto donations simple
To find a crypto-accepting nonprofit you care about, look no further. FreeWill offers Crypto for Charity, a site that gives donors like you the ability to give crypto to over 55,000 U.S. nonprofits fee-free. Your crypto is then converted and sent to the nonprofit in cash while donors automatically receive a tax receipt via email. Crypto for Charity was launched with a mission of helping nonprofits access the world of crypto philanthropy to great success.
Let’s say you want to donate to support reproductive rights and have some crypto you’re looking to offload before tax season. You can simply visit CryptoForCharity.io and choose:
The kind of crypto you’re looking to donate
The charity you want to support, such as the Reproductive Rights Cause Fund
You’ll follow the steps and send your donation off to a temporary wallet address. Crypto for Charity automatically converts that donation to USD, and you get a tax receipt for your donation straight to your email address with all the info you (or your accountant) will need for tax season.
Then, voila, the net proceeds of your gift are distributed to support reproductive rights, based on the organization’s individual grantmaking policies. At the end of the process, you’ve made a real difference in the world with your digital currency. Learn more about the impact you can have on the causes that matter most to you.
In summary:
Crypto philanthropy is a growing field as it benefits donors and charities alike.
While interest in crypto charity is strong, it can be difficult to locate nonprofits that accept crypto or crypto charity projects.
To do so, you can use a site like Crypto for Charity to donate crypto in support of your favorite nonprofits.
