Donating cryptocurrencies to charities is on the rise this holiday season of generosity, according to figures from crypto donation platform The Giving Block.
Founded in 2018, the platform routes donations from crypto investors to more than 1,000 non-profit organizations such as Operation Smile, Catholic Charities USA and People for the Ethical Treatment Animals.
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The biggest fundraising event of the year at the Giving Block, Crypto Giving Tuesday, which took place on November 30th, absolutely rocked last year’s event by raising $ 2.4 million in 24 hours – that’s 538% more than last year’s one-day event.
The number one cryptocurrency donated through the website was Ethereum at more than $ 1.2 million, followed by Bitcoin at over $ 885,000. Donors gave approximately $ 294,000 worth of USD coins, nearly $ 9,000 in Uniswap, and another $ 5,000 in Tezos.
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Like other charitable giving, donating with digital assets brings its own tax advantages. The giving block asks donors, “Why are you giving your crypto to the IRS when you can give it to a charity instead?”
“For nonprofits, crypto users are one of the hottest donor demographics,” co-founder Pat Duffy told FOX Business. “For crypto users, donating crypto to nonprofits is one of the hottest ways to reduce tax liability. But they didn’t have a moment to meet. That is why we started crypto giving on Tuesday. “
The group’s goal is to process $ 100 million in donations to nonprofits by December 31. When that is accomplished, says The Giving Block, “it will help put $ 30 million into the hands of charities that would otherwise be gone to the IRS.”
The concept is appealing to more and more investors as the digital market is up around 1,300% over the past two years – and Uncle Sam will come for his cut. Crypto is considered owned by the IRS and may be subject to capital gains or even regular income taxes.
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Donors can give crypto to a nonprofit instead of the government through The Giving Block, share the tax receipt with their accountant and have it valued. Then donors can secure their tax write-offs and capital gains exemption.
Things will be tight to hit the $ 100 million donation mark this year, according to Duffy, but there are still a few days until the campaign, which ends at midnight on Friday.
“It depends so much on the donations that come in this week,” he noted. “Let’s hope the whales come out full force this week!”