Charities can’t afford to lose out on the “new demographics of funders” that crypto donations expose them to.
Crypto Charities — New Demographic of Funders
Charities that accept cryptocurrency donations are preparing themselves for a brand-new group of donors who are among the most charitable, according to charity organizations. Alex Wilson, the co-founder of The Giving Block, said, “a cryptocurrency donation platform that offers back-end support to charities, many charitable organizations have yet to engage with the crypto community.”
United Way Worldwide, Feeding America, and UNICEF are the top three charitable organizations collecting donations. All three allow contributions in the form of bitcoins. NFT projects for philanthropy have had some success, even though these techniques are still relatively new. According to recent research by The Giving Block, NFT-related charitable giving activities would generate over $12.3 million in cryptocurrency donations for nonprofit organizations using The Giving Block in 2021. According to the survey, charity organizations that use NFTs engage younger donor groups while diversifying donation channels.
Charitable Organizations’ Stance on Crypto-Donations
According to the co-founder of The Giving Block, “the cryptocurrency community has been fantastic with the “philanthropic usage” of cryptocurrencies, and those contributors are also among the “most generous” with an average gift of over $10,000.”
To increase their fundraising transparency to the broader public, charities must use blockchain technology, according to Zunilka Whitnall, the New Product and Innovation Lead at UNICEF Australia. She also mentioned that they would have access to a “new demography of funders” because of technology.
Whitnall pointed out that many nonprofit organizations lack a “gap in understanding” of blockchain technology and “how it operates.” According to her, the organization is currently focusing on using blockchain technology to increase the effectiveness of how resources are distributed globally and to make internal processes more accessible to the public.
Bryce Thomas said that measuring and reporting the impact of organizations has experienced a “resurgence” of interest, and blockchain technology will make it easier to be transparent and accountable.
NFT projects for Breast Cancer Awareness Month
Benefits like this can be especially beneficial for spreading knowledge about life-threatening diseases. This October, Breast Cancer Awareness Month, several breast cancer-related organizations have begun using NFTs.
For instance, Shaney Jo Darden, founder of the Keep A Breast Foundation (KAB), said that KAB focuses on connecting with younger generations to draw attention to breast cancer. KAB is a nonprofit organization with a California address that strives to lower breast cancer risk. She stated, “Early identification can result in a 98% survival rate even though breast cancer is commonly detected in women after age 40. Given this, KAB tries to raise awareness of breast cancer positively and entertainingly, such as through educating young women utilizing NFTs.
Impacts of Crypto Donations
Giving to charitable causes with cryptocurrency is becoming increasingly common. With $30.79 million in donations made through The Giving Block, Ether was the cryptocurrency with the highest volume of grants in 2021. The Ukrainian government spent $54 million in cryptocurrency donations this year, mostly on military gear, munitions, and other defense equipment. This year, cryptocurrency donations have been especially notable as a crucial lifeline for Ukraine’s defense against Russia.
Although it is a novel idea to employ NFTs and cryptocurrency donations to assist such research, these projects still serve as helpful awareness-raising tools. For instance, raising money and awareness for breast cancer research in the metaverse isn’t always better; it’s just another way to reach out to potential new volunteers and contributors.