Crypto Donors Are Generous But Report Difficulties Giving To Charities

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People who invest in cryptocurrencies were more likely than traditional investors to donate at least $ 1,000 to charity in 2020, according to a new survey from Fidelity Charitable. But a significant proportion of cryptocurrency investors still don’t know how, or even if, they can donate digital currencies.

The survey interviewed 1,216 people in July and August with at least $ 25,000 invested outside of a retirement plan. Only 13% of those surveyed said they had invested in crypto. Forty-five percent of those who owned cryptocurrency reported donating $ 1,000 or more to charities last year, compared to 33% of all investors.

Only 34% of investors who own cryptocurrency said they had ever donated it to nonprofits. Of those who had not, 30% said they used the cryptocurrency only for investment purposes. But 19% said they didn’t know they could donate digital assets to charity, and 10% said it was “difficult” to find charities that accepted cryptocurrency.

Of those who had contributed to cryptocurrencies, many reported hurdles. Forty-six percent said it was difficult to find charities that accept cryptocurrency, while 44 percent said the crypto donation process was cumbersome.

Only 45% of those surveyed who owned cryptocurrency knew they could donate it to nonprofits. Thirty percent said it was “probably” legal but were not sure, and 23 percent said they did not know.

The survey also shed light on the attitudes of millennials towards cryptocurrencies and philanthropy. Millennials were more likely than others to own a cryptocurrency: One-third reported owning a cryptocurrency, compared to just 13% of all investors. Among millennial investors who gave at least $ 1,000 last year, 88% said charitable giving was “important” in their lives, compared with just 71% for Gen X investors and 69% of Gen X investors. baby boomers.

So far this year, Fidelity Charitable, which has sponsored donor-advised funds and accepted cryptocurrency since 2015, said it has seen the amount of cryptocurrency donated to its accounts increase to $ 158 million, or nearly five times over $ 28 million in cryptocurrency giveaways. Fidelity said it received throughout 2020-2020. Digital currencies still represent a small fraction of the more than $ 10.7 billion in contributions that Fidelity donors made to DAF accounts last year.

“As investors – especially millennials – combine their interest in digital currency with their charitable values, digital assets have the potential to become an important source of funding for philanthropy,” said Tony Oommen, vice president of Fidelity Charitable.

Some charities have long been equipped to accept digital currency donations. GiveDirectly, for example, has been accepting crypto donations since 2014.

Tyler Hall, the international aid organization’s communications director, said nonprofits should clearly notify donors if they accept crypto gifts.

“We don’t really do a lot of specific crypto donor targeting,” Hall says, but GiveDirectly makes his cryptocurrency address easy to find on his website, Twitter, and other platforms where he communicates with donors. His advice: “List your cryptocurrency address publicly and easily in as many cryptocurrencies as you accept. “


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