Charities risk losing a generation of donors if they don’t accept crypto

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Char­i­ties accept­ing cryp­to dona­tions are set­ting them­selves up for an entire­ly new demo­graph­ic of fun­ders — who just so hap­pen to be one of the most giv­ing, accord­ing to char­i­ty organizations. 

Alex Wil­son, the co-founder of The Giv­ing Block, a cryp­to dona­tion plat­form pro­vid­ing back-end sup­port to char­i­ties, told Coin­tele­graph that the cryp­to com­mu­ni­ty is still a mar­ket many char­i­ty orga­ni­za­tions have noin­t­er­act­ed with. 

The top char­i­ty orga­ni­za­tions in the world by funds received includ­ing Unit­ed Way World­wide, Feed­ing Amer­i­ca, and UNICEF. All three of them accept cryp­tocur­ren­cies as a means of donation. 

The Giv­ing Block co-founder said the cryp­to com­mu­ni­ty has been great with the “phil­an­thropic use” of cryp­tocur­ren­cy, and those cryp­to donors are also some of the “most gen­er­ous” — with the aver­age gift being over $10,000.

UNICEF Aus­tralia New Prod­uct and Inno­va­tion Lead Zunil­ka Whit­nall said it was impor­tant that char­i­ties imple­ment blockchain tech­nol­o­gy to make their fundrais­ing more trans­par­ent to the gen­er­al pub­lic. She also not­ed that the tech­nol­o­gy will also give them access to a “new demo­graph­ic of funders.”

Whit­nall how­ev­er not­ed that there is a “gap in under­stand­ing” of what blockchain is and how they work for many char­i­ty organizations.

Bryce Thomas, co-founder of Tokens for Human­i­ty, an orga­ni­za­tion devel­op­ing blockchain appli­ca­tions for the char­i­ty sec­tor told Coin­tele­graph that the major­i­ty of cryp­tocur­ren­cy hold­ers and users are between the ages of 18 to 35 — a demo­graph­ic which is dif­fi­cult for many char­i­ties to engage with.

Thomas said blockchain inte­gra­tion “solves the prob­lem” of donor engage­ment with younger demographics.

He also not­ed that there has been a “resur­gence” of inter­est in track­ing and report­ing the impact of non­prof­its and that blockchain tech­nol­o­gy would enable a clear­er way for trans­paren­cy and accountability.

UNICEF’s Whit­nall said its cur­rent focus with blockchain tech­nol­o­gy is improv­ing its effi­cien­cy in dis­trib­ut­ing resources glob­al­ly, as well as mak­ing its inter­nal oper­a­tions more effi­cient and trans­par­ent to the wider community. 

Relat­ed: NFTs and cryp­to pro­vide fundrais­ing options for breast can­cer awareness

Cryp­tocur­ren­cy has been a pop­u­lar means of giv­ing to char­i­ta­ble caus­es. Ether (ETH) was the most-donat­ed cryp­tocur­ren­cy in 2021, total­ing $30.79 mil­lion in dona­tion vol­ume via The Giv­ing Block.

This year, cryp­to dona­tions has most notably been a major life­line for Ukraine’s defense against Rus­sia, with the Ukrain­ian gov­ern­ment spend­ing $54M of cryp­to dona­tions on mil­i­tary equip­ment, hard­ware, muni­tions amongst oth­er defense equipment.

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