The U.S. nonprofits that are forerunners in crypto donations are attributing large spikes in charitable contributions. According to a recent report by BanklessTimes, the two largest charities in the United States of America have already raised over $2 billion for the year by accepting these digital assets.
Adoption of Crypto in Charitable Giving
Jonathan Merry, the CEO of BanklessTimes, is on a continent where digital currencies have been known to fundamentally govern the power of influence in philanthropy. Digital currencies produce this event because people with a lot of value tend to invest in charities that are meaningful to them. This movement is not only for established charitable organizations; it also covers the new platform that social enterprises are forming. Political candidates also now use cryptocurrency donations in the course of their campaign issues.
BanklessTimes report, the share of the US top non-profits that facilitate the receipt of crypto donations directly via crypto processing system accounts for 56%. This direct money transfer through the ‘crypto pockets’ will save the charities the time of the rather complex money transfers, thus accelerating the money flow process. This integration has simplified the donation process, which, along with the flexibility of digital giving, has made it even more convenient for technophiles to give and pledge.
Crypto Donations skyrocketed to $2 Billion
The Giving Block, a platform that supports crypto donations for charities, has been a significant conduit in this shift. Their data indicate a jump from $125 million in crypto donations in 2022 to $2 billion in the current year. This substantial increase reflects growing confidence in cryptocurrency transactions within the philanthropic community.
Popular organizations like Save the Children, World Vision International, Water Aid US, and the American Red Cross have commenced accepting crypto donations. This approach has been quite useful for charities as they are now able to raise funds through several fundraising methods and reach a wider audience, thus finding new sources of funding.
Challenges of Crypto Philanthropy
While nonprofits’ acceptance of cryptocurrency is on the rise, it does come with its challenges. Charities need to navigate complex regulatory landscapes, including compliance with KYC (Know Your Client) and Anti-Money Laundering (AML) laws. These regulations ensure the legitimacy of financial transactions and the security of the financial system.
Moreover, cryptocurrency’s digital nature increases its exposure to cybersecurity risks. Nonprofits must enhance their security measures to protect against potential financial losses from cyber-attacks. Despite these risks, the trend toward digital assets in the nonprofit sector is accelerating, showing no signs of slowing down.
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