Enabling crypto donations to donor-advised funds
Today, The Giving Block, the leading crypto donation solution for nonprofit organizations and individual donors, and RenPSG, the leading charitable giving platform provider and administrator, announced their strategic partnership in response to needs of the changing charitable giving landscape.
This partnership allows donors to easily move cryptocurrency assets into new or existing donor-advised funds to support nonprofits and other charitable organizations.
Adding crypto to charitable donor-advised funds
RenPSG will begin offering this solution to its clients ahead of the end-of-year giving season to support the surge in crypto donations. This feature is made possible through an integration with The Giving Block’s innovative donation technology that allows charities to accept more than 45 types of cryptocurrency, including Bitcoin, Ethereum, and Dogecoin. Renaissance Charitable Foundation, Inc., a donor-advised fund sponsor, is the first of RenPSG’s institutional clients to accept crypto donations through the new partnership beginning this week.
“As the number of cryptocurrency users has grown, so has the number of crypto donations. As a response to this changing market, we needed to provide an easy and convenient way to facilitate crypto donations and are excited to partner with The Giving Block to offer this solution to our clients,” said Kelly Palmer, Executive Vice President of Strategic Growth Operations for RenPSG. “We expect many of our clients to take advantage of this solution to diversify the types of assets they accept into their donor-advised fund offering and create interest to a whole new pool of donors.”
In recent years, donor-advised funds have become the fastest-growing charitable giving method. DAFs enable donors to make charitable gifts that appreciate in value and pay out over several years. They have become popular among small-gift donors that wish to maximize the value of their contributions while benefiting from tax efficiencies.
Enabling philanthropy with Bitcoin, Ethereum, and more
As with DAFs, cryptocurrencies have experienced rapid growth in popularity in recent years. Cryptocurrencies like Bitcoin have now attracted more than 220 million users and boast a global market cap of roughly $2 trillion.
For crypto donors, there is much excitement about their ability to support causes with crypto, coupled with the fact that crypto donations can be a highly tax-efficient form of philanthropy. By donating cryptocurrencies instead of traditional government-back currencies, individual donors in the U.S. and several other countries have the option to reduce their capital gains taxes.
“The decentralized nature of cryptocurrency allows people around the world to experience a new kind of financial freedom. Now, those who wish to be generous with their crypto have a new avenue for increasing the value of their charitable contributions,” said Alex Wilson, co-founder of The Giving Block. “As more options become available for donating crypto, we will start to see philanthropy emerge as one of the main pillars of the cryptocurrency community at large.”
Today’s announcement builds on RenPSG’s work to remove friction in the giving process while making charitable giving more tax efficient for all donors, and The Giving Block’s aim to empower charities to accept cryptocurrency.
Established in 1987, RenPSG provides a custom donor-advised solution utilizing their proprietary philanthropic software platform DFX, with complete administration including charity vetting and grant distribution. RenPSG supports more than $15 billion in donor-advised fund assets for financial firms and nonprofit organizations throughout the United States. To learn more about RenPSG, visit www.renpsg.com.