The Most Important Bitcoin Facts for Nonprofits in 2024

Bitcoin is roaring back this year, proving (once again) that it’s a major global asset.

Start your Bitcoin education (or re-education) with a quick snapshot of Bitcoin’s recent performance and key market signals:

1. Fifteen years ago, Bitcoin became the world’s first cryptocurrency. Today, it is still the most popular crypto asset, with a market capitalization of $1.4 Trillion.

At the time of writing, Bitcoin’s market cap is about 3 times larger than the world’s next-biggest cryptocurrency, Ethereum.

2. Bitcoin was the best-performing asset of the 2010s, boasting more than 10 times the returns of the NASDAQ 100.

Bitcoin, on average, has returned 671% per year. By comparison, the S&P 500 has a historical average of 11.5% annualized return.

3. Bitcoin’s rise is far from complete. It broke a new all-time high in 2024, passing the $70,000 mark.

After reaching a cycle low in November 2022, Bitcoin’s price grew 154% in 2023 and is now reaching new highs.

4. The next Bitcoin Halving event, expected in April 2024, is thought to send the asset’s prices even higher.

Bitcoin Halving events make mining Bitcoin more difficult, which limits supply of new Bitcoin and typically increases demand. Historically, Bitcoin’s price has reached new all-time highs following each previous halving.

5. The SEC’s approval of 11 spot Bitcoin ETFs are proving that traditional investors want exposure to crypto.

With these new Bitcoin ETFs breaking records left and right, experts have called their launch, collectively, one of the most successful ETF launches of all time.

6. The upward price movement has put more than 91% of Bitcoin holders in profit this year.

This milestone occurred only a few weeks ago, when Bitcoin’s price reached about $48,000 last week. With the price at $70,000, even more traders are likely to be “in profit” now.

Now let’s unpack Bitcoin’s serious potential as a tool for charitable giving in 2024.

After all, Bitcoin donations are one of the most tax-efficient ways to support a social cause.

7. Some nonprofits have accepted Bitcoin donations for more than 10 years.

For example, Save the Children has welcomed Bitcoin donations since 2013.

8. One of the first major crypto donations was made via a series of Bitcoin grants worth $55 million.

In 2018, The Pineapple Fund made grants to dozens of nonprofits, putting the Crypto Philanthropy movement on the nonprofit sector’s radar. many of which still accept crypto today with The Giving Block, including The Water Project.

9. Bitcoin is consistently one of the most popular cryptocurrencies to donate to charities, with tens of millions of dollars worth donated to date.

Over the past five years, Bitcoin has been in the top 3 most-donated assets processed by The Giving Block each year.

10. Bitcoin donations can help crypto investors lower their taxes—often by 30% or more.

Donating cryptocurrencies like Bitcoin is not a taxable event. In other words, donors will not owe capital gains tax on donated cryptocurrency, plus the donations can be written off as a charitable contribution. These tax benefits can lower their tax liability significantly.

11. With Bitcoin’s market cap at $1.4 Trillion, if people donated 1% of Bitcoin to charity, the philanthropic value would exceed $14 Billion.

In a bull market, fundraisers should imagine that every crypto investor is a potential crypto donor.

12. Nonprofits can even benefit from NFT charitable giving initiatives, thanks to the rise of Bitcoin Ordinals.

Bitcoin Ordinals are the equivalent of NFTs on other blockchains. Well-known projects like NodeMonkes are making a charitable impact through Bitcoin donations.

This type of charitable impact is possible not because of tax incentives alone. In fact, the crypto ethos is about bettering the world through financial inclusion and easier access to tools for empowerment.

Let’s explore what makes Bitcoin a powerful tool for social and environmental impact…

13. Bitcoin is widely praised for its ability to uphold human rights and promote financial freedom.

From providing access to financial literacy, the right to own property, and resistance to censorship, Bitcoin is creating a global revolution.

14. Despite misconceptions about Bitcoin’s wasteful energy usage, Bitcoin only uses a fraction of the energy that other industries rely on.

Estimates have compared the energy of Bitcoin to the energy used by Christmas lights.

15. The Bitcoin mining industry is becoming greener each year, reportedly getting more than 50% of its energy needs from sustainable sources.

Innovations such as hydro-cooling farms and utilizing associated petroleum gas showcase the Bitcoin mining industry’s adoption of more sustainable practices.

16. Today, some environmental institutions like national parks use Bitcoin mining for income streams.

Congo’s Virunga National Park recently became the first of its kind to operate a Bitcoin mine.

Now, how easy and common is it to accept Bitcoin donations in 2024?

17. Over the past six years, The Giving Block has helped thousands of nonprofits, higher ed institutions, houses of worship, and other charitable organizations fundraise crypto.

In 2023, we had our third-biggest year for nonprofit adoption on record.

18. A growing number of nonprofits view Bitcoin donations as an essential part of their fundraising strategy.

Some organizations, including Built with Bitcoin, have showcased the impact of Bitcoin donors on their missions.

19. Nonprofits don’t have to worry about holding Bitcoin on their balance sheets. The Giving Block’s solution allows nonprofits to automatically sell crypto donations upon receipt.

Crypto’s volatility creates wealth opportunities for investors, which can incentivize them to donate crypto. But accepting crypto donations doesn’t mean you have to take on the risk of holding volatile assets.

20. For the first time, a majority of the top 100 U.S. charities now accept crypto donations.

…And three-quarters of these organizations use The Giving Block as their crypto fundraising platform.

21. There are now 580 Million crypto users worldwide, many of whom own Bitcoin.

It’s no wonder that nonprofits are bullish on crypto philanthropy: the crypto user base grew even during the recent market correction.