In the wake of Hurricanes Helene and Milton, millions of people in states across America, including Florida, Georgia, South Carolina, North Carolina, Virginia, and Tennessee, have been left devastated. As recovery efforts continue, various Web3-focused organizations are allowing donors to give cryptocurrency to help communities affected by the recent hurricanes. One such organization is The Giving Block, which has established the “Hurricanes Helene & Milton Emergency Response Fund” to support charitable organizations with their relief efforts. The Giving Block is partnering with well-known organizations like Save the Children and Project Hope to enable donors to make crypto donations and more.
The Blockchain Association, a Washington, DC nonprofit organization supporting digital assets, has created an online directory of different charities assisting in relief and recovery efforts for Hurricanes Helene and Milton. Organizations like Catholic Charities, The Salvation Army, and Americares are included in the directory. Curtis Kincaid, Executive Vice President of Marketing and Communications of The Blockchain Association, stated that these charities are providing critical services such as medical care, food, and shelter. Additionally, crypto philanthropy platform Givepact has published a blog post to raise awareness on how crypto donors can support relief efforts, highlighting local charities like Florida Wildlife Federation and BeLoved Asheville.
Alicia Maule, co-founder and CEO of Givepact, mentioned that crypto donors typically give 82 times more than cash donors, making them a valuable source of support for nonprofits. The Giving Block’s Annual Industry Report on the State of Crypto Philanthropy revealed that over $2 billion has been donated using cryptocurrency as of January 2024. The report also noted that 56% of leading U.S. charitable organizations now accept crypto donations. Pat Duffy, co-founder of The Giving Block, believes that cryptocurrency has become one of the fastest-growing donation methods in the U.S. due to the growing population of crypto investors and the benefits associated with donating digital assets.
Despite the benefits of crypto donations, there are challenges that need to be addressed, including regulatory uncertainty, value volatility, limited charity acceptance, and the need for education on the subject matter. Jonathan Bander, managing partner and head of tax strategy at ExperityCPA, explained that cryptocurrency is currently exempt from wash sale rules, allowing investors to maximize tax-loss harvesting strategies efficiently. As the crypto donation trend continues to grow, organizations like The Giving Block, The Blockchain Association, and Givepact are playing a crucial role in facilitating crypto donations for relief efforts in the aftermath of natural disasters like Hurricanes Helene and Milton. By harnessing the power of cryptocurrency, donors can make a significant impact on the communities in need.
