Donors are expected to give $2.5 billion in cryptocurrency in 2025, surpassing the $1 billion total donated in 2024.

That’s according to a new report published by The Giving Block, a US based platform that connects nonprofits to virtual currency.

It states that crypto philanthropy has gone ‘mainstream’, with an increase in nonprofits receiving the alternative currency from donors as part of a ‘greater wealth transfer’.

Universities, large nonprofits and faith-based philanthropy are increasingly use crypto, according to the report, which focuses largely on US philanthropy.

Education nonprofits received the largest share of crypto donations, making up 16.0 per cent of all crypto donations.

Women and girls empowerment charities received 9.3 per cent of all crypto donations, the fifth highest proportion.

The crypto philanthropy boom is part of the $84.4 trillion is set to be transferred in wealth to younger people from the boomer generation, says the platform.

‘Crypto donors are typically younger than the average donor (often in their 20s and 30s) but still wealthier and more philanthropic than the average donor,’ said the report.

‘Because of this, nonprofits get the best of both worlds. They get a young donor who has the capacity to give large gifts while also having a lifetime ahead of them to build a relationship with the causes they care about.’

The report also cites that donors tend to fall into two camps; ‘evangelists’ who are ‘long-time holders who experienced significant gains and want to “pay it forward,” aligning their giving with their belief in the decentralised future of finance.’

So-called ‘Optimistic Investors’ want the ‘financial advantages of donating crypto, such as reducing taxable gains while supporting causes they care about’. They are often younger philanthropists who view the virtual currency as a tool for ‘maximising returns’ and seek a ‘strategic way to align tax efficiency with philanthropic goals.’

Read the full article about donations of cryptocurrency by Shafi Musaddique at Alliance Magazine.