People who invest in cryptocurrencies were more likely than traditional investors to donate at least $1,000 to charity in 2020, according to a new survey from Fidelity Charitable. But a significant proportion of cryptocurrency investors remain unsure how, or even if, they can donate digital currencies.
The survey polled 1,216 people in July and August with at least $25,000 invested outside of a retirement plan. Just 13 percent of respondents said they had crypto investments. Forty-five percent of those who owned cryptocurrencies said they donated $1,000 or more to charities last year, compared with 33 percent of all investors.
Only 34 percent of investors who own cryptocurrencies said they had ever donated them to nonprofits. Among those who hadn’t, 30 percent said they were using cryptocurrency for investment purposes only. But 19 percent said they did not know they could give digital assets to charity, and 10 percent said it was “difficult” to find charities to accept cryptocurrency.
Among those who had contributed cryptocurrencies, many reported hurdles. Forty-six percent said it was difficult to find charities that accept cryptocurrencies, while 44 percent said the process for donating crypto was cumbersome.
Only 45 percent of respondents who owned cryptocurrency knew they could donate it to nonprofits. Thirty percent said it’s “probably” legal but didn’t know for sure, and 23 percent said they did not know.
The survey also shed light on millennial attitudes toward cryptocurrencies and philanthropy. Millennial investors were more likely than others to own cryptocurrency: One third reported owning cryptocurrency, compared with just 13 percent of all investors. Among millennial investors who gave at least $1,000 last year, 88 percent said charitable giving was “significant” in their lives, compared with only 71 percent for Generation X investors and 69 percent of Baby Boomers.
So far this year, Fidelity Charitable, which sponsors donor-advised funds and has accepted cryptocurrencies since 2015, said it has seen the amount of cryptocurrency donated to its accounts increase to $158 million, a nearly five-fold increase over $28 million in cryptocurrency gifts Fidelity said they received across all of 20202020. The digital currencies still represent a small fraction of the more than $10.7 billion in contributions Fidelity donors put into DAF accounts last year.
“As investors — particularly millennials — combine their interest in digital currency with their charitable values, digital assets have the potential to become a significant source of funding for philanthropy,” said Tony Oommen, vice president of Fidelity Charitable.
Some charities have long been equipped to accept donations of digital currencies. GiveDirectly, for example, has been taking crypto donations since 2014.
Tyler Hall, the international aid organization’s communications director, says nonprofits should clearly communicate to donors if they accept crypto gifts.
“We don’t really do a lot of specific targeting of crypto donors,” Hall says, but GiveDirectly makes its cryptocurrency address easy to find on its website, Twitter, and other platforms where it communicates with donors. His advice: “Transparently and easily list your cryptocurrency address publicly in as many cryptocurrencies as you accept.”
