Three Top Reasons to Give Through Crypto Donations

You may have already decided to provide financial aid to a group of people and you’re wondering how to go about it. A great option that you should consider is crypto donations. However, some people still hesitate to use crypto donations because they think price volatility makes it too risky or because they simply don’t know much about it.

Crypto user base is on the rise

There is no doubt that the number of people who give through crypto donations are increasing. In a joint report on the future of crypto exchanges by Boston Consulting Group (BCG), Bitget and Foresight Ventures, the global crypto user base is projected to reach 1 billion by 2030.

Cryptocurrency donations offer enormous potential for charities by providing a secure and efficient way to receive funds globally, ensuring that the maximum amount reaches those in need.

There are measures to manage crypto price volatility

But the volatility of crypto prices makes crypto donations too risky, you say. But nonprofits have ways to manage this volatility. Examples of such measures that platforms like CryptoDonateNow.org implement include the following:

Integration of automated exchange systems in donation platforms
Instant conversion of donated crypto into stablecoins such as USDC or fiat. This helps to preserve the value of donations even with market shifts.
Enabling the auto-conversion and auto-sell feature so that donations are instantly converted to cash, thereby eliminating price volatility concerns.

Binance Charity’s Food for Africa initiative leveraged these measures in 2024 by using blockchain technology to expand access to micro-grants to recipients in over 30 countries in Africa. The initiative was able to focus on providing fast alternative payment solutions with users being able to purchase digital assets via direct fiat channels and peer-to-peer trading.

Crypto donations are tax-deductible

When you donate crypto to registered nonprofits, such donations are often tax-deductible. In fact, according to IRS guidelines, you are potentially able to reduce your tax burden when you donate a portion of your crypto that you would have otherwise sold.