Charities that accept cryptocurrency donations are gearing up for a whole new demographic of funders, which happens to be one of the most generous, according to charities.
Alex Wilson, co-founder of The Giving Block, a cryptocurrency donation platform that provides support to charities, told Cointelegraph that the crypto community remains a market that many charities have not engaged with.
The world’s top charities by funds received are United Way Worldwide, Feeding America and UNICEF. All three accept cryptocurrencies as a means of donation.
The Giving Block co-founder said that the cryptocurrency community has been very good about the “philanthropic use” of digital assets, and that those donors are also some of the “most generous”, with an average donation of more than $10,000. .
Zunilka Whitnall, director of new products and innovation at UNICEF Australia, stated that it is important for charities to implement Blockchain technology to make their fundraising more transparent to the general public. She also noted that the technology will also give them access to a “new demographic of funders.”
However, Whitnall noted that there is a “gap in understanding” of what Blockchain technology is and how it works for many charities.
Bryce Thomas, co-founder of Tokens for Humanity, an organization that develops blockchain applications for the charity sector, told Cointelegraph that the majority of cryptocurrency holders and users are between the ages of 18 and 35, a demographic with which it is difficult. relate to many charities.
Thomas said that the integration of Blockchain technology “solves the problem” of donor engagement with younger demographics.
He also noted that there has been a “resurgence” of interest in tracking and reporting the impact of nonprofit organizations and that Blockchain technology would enable a clearer form of transparency and accountability.
UNICEF’s Whitnall said his current focus with blockchain technology is to improve its efficiency in distributing resources globally, as well as making its internal operations more efficient and transparent to the broader community.
Cryptocurrency has been a popular means of donating to charitable causes. Ether (ETH) was the most donated cryptocurrency in 2021, with a total volume of $30.79 million in donations through The Giving Block.
This year, cryptocurrency donations have been a major lifeline for Ukraine’s defense against Russia, with the Ukrainian government spending $54 million in cryptocurrency donations on military equipment, hardware, ammunition, among other defense equipment.
Clarification: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information presented here should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
Investments in crypto assets are not regulated. They may not be suitable for retail investors and the entire amount invested may be lost. The services or products offered are not directed or accessible to investors in Spain.