It is increasingly common to see cryptocurrencies used as an option to pay for goods and services, and charitable giving. But even as they become part of everyday transactions, people, businesses, and other institutions are on a huge learning curve as they try to keep up growing cryptocurrency, smart contract and blockchain landscapes.
So, what do these landscapes and trends mean for the charitable sector? How is charitable giving impacted by this new approach to giving? A large sector of the Millennial generation is involved in serious waves of cryptocurrency charitable giving.
Currently, around 13% of investors hold cryptocurrency in their portfolios. Among the rest, 20 percent say they may consider investing in cryptocurrency in the next year.
Beyond that, Millennials are much more likely to be actively involved in cryptocurrency investing. It’s estimated that 35% of young investors say they own cryptocurrency and more than 50% say they would consider investing in cryptocurrency within the next year.
Funding Charitable Giving with Cryptocurrency
Cryptocurrency investors are notably charitable and although the tax-savvy strategy of donating digital assets to charity is not well-known, it’s becoming a clear option moving forward.
Nearly half (45%) of cryptocurrency investors donated $1,000 or more to charity in 2020 compared to 33% of the general investor population.
Investors who have donated cryptocurrency to charity were driven both by the tax benefits of their donations and by a desire to do good. Two-thirds say they wanted to do something good with their cryptocurrency, while more than half say their assets had appreciated significantly (56%) or mention tax benefits (54%).