Crypto users are eager to support charitable causes and they tend to be enthusiastic about opportunities to use their digital assets to fuel social good. When crypto users have the ability to donate their cryptocurrency directly rather than cash, this is yet another incentive to make a contribution to their favorite organizations.
Nonprofits can tap into this enthusiasm and it’s helpful for organizations to understand exactly why crypto donors are interested in charitable giving. Here are a few of the main reasons why people are interested in donating crypto:
Donating Crypto is an Opportunity to Give Back
Many crypto users have large gains and likely have the financial means to donate, which means they’ll be seeking causes to support. Whether a crypto donor wants to support protecting the environment or women’s empowerment, nonprofits that make it easy to donate crypto will catch their attention.
Millennials make up the majority of crypto users, which means that many users have a desire to give back and tend to view themselves as philanthropists. Crypto donors also tend to donate on average a larger amount than other donors; 45% of crypto users donate at least $1,000 each year and the average crypto donation size is $10,000.
Donations Help Fuel Crypto’s Mainstream Adoption
Each year, cryptocurrencies are used by more and more people around the world. In fact, the number of people using crypto is predicted to reach 1 billion by 2030.
Crypto users are eager for positive use cases for cryptocurrency, and the nonprofit sector is experiencing one of the most exciting forms of mainstream crypto adoption. As more nonprofits accept crypto donations, this enables cryptocurrency to make more of a positive impact globally.
It’s a win-win situation in which both crypto users and nonprofits contribute to mainstream crypto adoption in a way that changes the world for the better.
Crypto Donors Enjoy Further Tax Incentives
Charitable donations in general receive tax deductions, but crypto donations are an especially tax-efficient form of giving. For tax purposes, the IRS treats cryptocurrency as property. By donating crypto directly versus converting it into cash first, crypto donors don’t have to pay capital gains taxes on their donated crypto, and may receive even further deductions.
Tax benefits are a big reason why crypto donors are interested in giving, as it gives an additional boost to their desire to give back and provides even more incentive to support their favorite causes.
Encouraging Crypto Donors to Give
Understanding why crypto donors give is essential for nonprofits to understand. Now that you know the main reasons why, you can use this information to strengthen your organization’s engagement with current and future crypto donors.
Get our free PDF download, Crypto Fundraising 101: A Beginner’s Guide for Nonprofits to find out more about why crypto donors give and how your nonprofit can tap into the crypto donor demographic.