The Crypto is Rewriting the Codes of Philanthropy!

From $125 million in 2022, the total crypto donations collected by major American charities reached $2 billion in 2024. This boom was triggered when 2 of the 3 largest charities began accepting crypto donations. This openness to cryptos allowed them to expand their donor base, thus making them significant players in adoption.

The largest American charitable organizations open up to cryptos

Cryptocurrency donations are starting to go viral. A year ago, crypto donations collected by American charitable organizations amounted to $125 million. Who would have thought that the country’s two largest charitable organizations would collect more than $2 billion in crypto donations just this year? That’s what TheGivingBlock reports, a platform that facilitates crypto donations to charitable organizations.

According to TheGivingBlock, this explosion comes from the fact that several charitable organizations have begun to accept crypto donations. This has allowed them to broaden their donor base and increase their fundraising capacity. These include Save the Children, World Vision International, Water Aid US, and the American Red Cross.

Jonathan Merry, CEO of BanklessTimes, also indicates that there is now a wave of individuals rich in cryptocurrencies eager to invest their cryptos in charitable works. This choice mainly reflects the evolution of philanthropists’ confidence in cryptocurrencies and confirms the convenience and practicality of crypto transactions for donors.

🚀 Exciting news!

The 2024 Annual Report on Crypto Philanthropy is out now.

Check out the thread below for key highlights! ❤️🧵https://t.co/BAn8rtabYr

— The Giving Block (@TheGivingBlock) February 29, 2024

Challenges related to the boom in philanthropic donations

According to data, USDC was the most used cryptocurrency for charitable donations in 2022. For this year 2023, the cryptocurrency has maintained its place. However, USDC was followed by ETH, which came second on the list, closely followed by BTC. But while crypto transactions proved more convenient for American charitable organizations, they are not without difficulty.

Indeed, they must protect themselves against the risks of financial losses, as the nature of cryptocurrencies exposes them to cybersecurity risks. They must also resolve the complexities of the regulatory landscapes that vary from one jurisdiction to another. Added to this are the requirements for compliance with AML laws and KYC verifications in different jurisdictions.