Charities are becoming more receptive to crypto donations thanks to the mainstream adoption of Bitcoin and other digital assets.
Blockchain-based nonprofit organization Endaoment has raised more than $7 million for charities in its first year of operations, marking another major milestone for the rapidly growing cryptocurrency donations industry.
Endaoment’s donor-advised funds, or DAFs, have been distributed to more than 100 nonprofits over the past year, the company announced Thursday. Endaoment said it has distributed roughly 60% of donated funds over that period, which is considerably higher than the average of around 22% for traditional DAFs. Endaoment president and CEO Robbie Heeger credited the efficiency of on-chain technology as well as best practices for the high distribution rate. He told Cointelegraph that Endaoment has onboarded over 200 organizations to date. Further, over 300 organizations have contracts on-chain.
Nonprofits that have received Endaoment grants include the Committee to Protect Journalists, Carbonfund.Org, Cancer Research Institute and Jane Goodall Institute for Wildlife Research Education & Conservation. As Cointelegraph reported, American business magazine Fortune launched a decentralized donations fund through Endaoment in September to support independent journalists.
When asked about the future of charitable giving for digital assets, Heeger gave a favorable outlook. “Not only are markets at all-time highs, creating great opportunities to take and offset gains, but it’s also a critical part of the broader story of crypto adoption,” he said of crypto donations, adding:
“Crypto investors and enthusiasts are noticing the value and fulfillment they can realize by bringing their favorite nonprofits into the crypto community. It’s a great way to manage your own tax obligation while also spreading the gospel and convenience of crypto assets.”
The cryptocurrency market has created tremendous wealth for its early adopters, with several high-profile industry veterans pledging generous sums to charitable causes. The infrastructure surrounding crypto charities has also improved, with more nonprofits in a position to accept donations in Bitcoin (BTC), Ether (ETH) and other digital assets. Organizations like the American Cancer Society and RenPSG have already opened their doors to cryptocurrency donations.
As Cointelegraph reported in May, charitable gifting in crypto is likely to increase during the bull market as more wealth is created through buying and holding digital assets. The total market capitalization of all cryptocurrencies approached $2.8 trillion on Wednesday, according to Cointelegraph Markets Pro.