In 2014, United Way Worldwide Charities became the first organization to accept crypto. Since the announcement that they will (now) accept donations in Bitcoin via Coinbase, several others have joined. As of 2022, the amount of crypto-based donations has increased exponentially.
With this exponential increase, several other charity organizations still do not receive donations in cryptocurrency. Experts and industry players, however, identify the benefit of accepting crypto.
There is hardly any sector that cryptocurrency hasn't impacted. Experts say the charity organization will reach more donors and record more donations when they accept crypto.
Furthermore, industry players say charities accepting crypto are setting themselves up for a new demographic of donors. Those who do not accept crypto lose out on this entirely new set of donors. They consider this demographic of donors as the most giving.
Alex Wilson of The Giving Block said many charity organizations are yet to interact with the crypto community. Alex Wilson is the Co-founder of this crypto donation platform providing back-end support to charities.
Similarly, he emphasized the benefits of receiving crypto from donors while identifying how generous crypto donors are. He said,
Those crypto donors are some of the most generous, with the average gift of over $10,000."
Furthermore, Zunilka Whitnall, UNICEF Australia's New Product and Innovation Lead, have a similar testament. She explained the importance of implementing blockchain technology.
She said it is important for charities to implement blockchain technology to make fundraising more transparent. Zunilka Whitnall added that the technology would give them more access to a new demographic of donors.
Furthermore, experts opine that most crypto holders fall between the age of 18 to 25— there tends to be difficulty in the interaction between this category of people and fundraising projects. Nevertheless, blockchain technology seeks to solve this difficulty.
The Co-founder of Tokens for Humanity, Bryce Thomas, revealed that blockchain integration "solves the problem." Blockchain technology allows seamless engagement between the younger demographics and charities.
Similarly, industry players have noted a resurgence in tracking and reporting activities of charities. This is geared towards accountability and preventing crimes such as money laundering by these charity organizations.
This resurgence comes at a time when financial criminals disguise themselves as fundraising projects to launder funds using crypto.
Undoubtedly, blockchain technology will help promote transparency and accountability and help trace illicit financial activities.
Top charities in the world understand the benefit of receiving crypto donations. For instance, prominent charities such as United Way Worldwide, Feeding America, and UNICEF accept crypto donations.
Experts, however, identified the need for all charities to benefit from the new demographic of donors— alongside the benefit of blockchain technology to their activities.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information but will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.