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Crypto has become an essential option for donors to support Ukraine from abroad. The boost in crypto-based fundraising campaigns has shown a major trend this year. Most crypto holders have started donating their coins to support charitable objectives. Moreover, charities around the world are requesting donations in crypto to support Ukraine.

A famous crypto-providing platform, Endowment has raised more than $2 million for charities to support Ukrainian people. The company also experienced an increase of 100x in donation volume on its platform last year from $28 million. The Giving Block (a crypto non-profit platform) has also received over $1.5 million in crypto donations. The company also experienced a donation boost of up to $69 million last year, a 1,558% increase from 2020.

Ukraine Emergency Response Fund

The platform announced a campaign on Saturday to raise $20 million in cryptocurrency to support the Ukrainian government and its citizens. The Ukraine Emergency Response Fund is supporting various nonprofit groups including Save the Children and United Way Worldwide. However, nonprofit groups aren’t the only ones looking to purchase crypto as a donation option.

The government of Ukraine has also raised more than $54 million in Bitcoin, Tether, Polka Dot, Ethereum, and other cryptocurrencies. These cryptocurrencies will primarily support funding the Ukrainian military. Moreover, the Ministry of Digital Transformation of the Ukraine government has preceded the effort to bring crypto donations.

The new partner companies will support in conversions of these donations and deliver them to the central bank of Ukraine. The Russian invasion of Ukraine has undoubtedly acted as a motivation for donors to release crypto. It is noteworthy that the mechanism also increased popularity across various types of charitable objectives in 2021.

Crypto offers more Tax Incentives

It is important that the tax incentives option is one of the key motivating elements. The CEO of The Giving Block, James Duffy said you have crypto if you need t

Tax Incentives

To do something charitable. The crypto is now offering more tax incentives and appreciates donations in digital currency. It would allow them to decrease the amount of taxes with the amount provided as a donation.

So, crypto or stock is considered more fruitful than giving away cash as it offers another major tax incentive. They will have to pay around 37% of the profit in capital gains taxes if cryptocurrency holders sold their coins. But they don’t need to pay capital gains taxes if they are donating the coins. Keep in mind that dual tax incentive clearly defines why crypto holders often need to hold onto digital currency.

Donation offers instant Tax Deduction

Moreover, donor-advised funds are a famous platform for asset donations. It enables individuals to get an instant tax deduction while contributing crypto and other assets or cash to a dedicated charity account. The account holder can eventually forward the funds to the account of nonprofits according to their requirements.

Endowment and The Giving Block is one of the platforms offering donor-advised funds that can accept crypto. However, tax incentives can soften the deal for donors to deliver crypto. Most crypto donors often donate a larger amount compared to donors who give stock or cash. A sense of identity and community performs a major role in motivating contribution like most trends in the crypto.

However, some larger nonprofits such as Save the Children have designed crypto donation programs. The US charities alone collected around $470 billion in 2020 from donors around the world. Some major nonprofits are hesitating to get involved following concerns about crypto-linked fraud and scams. Small nonprofits are accepting crypto as a ‘lottery ticket’ without having the powerful internet.