On March 30, The Giving Block, an intermediary organization that helps nonprofits accept donations of crypto assets, released their annual report on crypto philanthropy, sharing data and trends in digital asset donations to charities.
The report points to a decrease in donations made through the platform, which totaled about $50 million, compared to the $70 million processed in 2021. This trend can be observed consistent with reports from other organizations that allow crypto donations and this was not the case unexpectedlyGiven the poor performance of digital asset markets in 2022.
Despite this malaise, The Giving Block notes that more nonprofits are using their platforms to accept crypto donations than any other year and that the average size of gifts remains high. These dynamics suggest that crypto donation trends could recover as digital asset markets improve.
Digital asset donations are likely to continue to fluctuate as market volatility and cryptocurrency user base ebbs and flows, as we have seen over the past several years. However, if policymakers develop thoughtful consumer protection measures that bolster confidence in crypto markets — which is proving to be a bigger boost than many had hoped — more investors could trade digital assets and potentially increase their market value. And nonprofits already working with crypto donors will be the first in the charity sector to benefit as crypto’s user base grows sharply.
