Crypto philanthropy is a form of charitable giving, where individuals and organizations donate crypto-assets to support a cause. The rise of trading and investing in crypto-assets has made it a popular choice for donations to charities and non-profits. In recent years, crypto donations have increased exponentially, marking the beginning of a new era of digital asset philanthropy.
The millennial factor in crypto-philanthropy
The millennials, being the most philanthropically inclined generation, have played a significant role in the adoption of crypto-philanthropy. With 35% of the millennials invested in cryptocurrencies, it is no surprise that the volume of crypto-donations to charities has increased. Moreover, as nearly 90% of the millennials describe “charitable giving [as] an important part of their lives”, this highlights a potential untapped donor pool for non-profit organizations.
New revenue streams for charities
The rise of crypto-philanthropy has opened up new revenue streams for charities. A quarter of millennials in the US own and trade crypto-assets, providing ample opportunities for charitable organizations to tap into this donor base. For-profit blockchain companies like Ripple, have donated to COVID-19 emergency funds, while Coinbase has pledged to donate 1% of its profits, equity, and time to charity.
Frequently Asked Questions (FAQ)
What is crypto philanthropy?
Crypto philanthropy involves donating crypto-assets for charitable causes instead of cash, stocks, or any other assets.
Which generation has been a significant contributor to crypto philanthropy?
Millennials have been a significant contributor to crypto philanthropy since they tend to be more philanthropically inclined and invested in cryptocurrencies.
What are the new revenue streams for charities?
The rise of crypto-philanthropy has opened up new revenue streams for charities, which include donations from millennials who own and trade crypto-assets and for-profit blockchain companies who have pledged to donate profits and equity to charity.
The rise of crypto philanthropy represents a new era of digital asset giving and opens up a new world of possibilities for non-profit organizations to diversify their donor base and engage with the millennials who are more inclined to give and are invested in cryptocurrencies.