Hurricanes Helene and Milton have wreaked havoc, leaving millions devastated across states like Florida, Georgia, South Carolina, North Carolina, Virginia, and Tennessee. As recovery efforts unfold, several Web3-focused organizations are facilitating cryptocurrency donations to support affected communities.
The Giving Block Launches Hurricane Relief Fund
One notable initiative is The Giving Block, a crypto charity platform that has established the “Hurricanes Helene & Milton Emergency Response Fund.” This fund aims to assist various charitable organizations in their relief efforts.
Pat Duffy, co-founder of The Giving Block, shared that they are collaborating with numerous nonprofits to address essential community needs. “We are working closely with these organizations to ensure donations provide critical services like medical care, food, shelter, and humanitarian aid for those impacted,” he said.
The Giving Block partners with renowned organizations such as Save the Children and Project Hope, allowing donors to contribute through various methods including cryptocurrency, stocks, donor-advised funds, and credit cards. Duffy emphasized the importance of maximizing impact during this critical period.
Additionally, Jared Isaacman, CEO of The Giving Block’s parent company Shift4, has pledged to match the next $500,000 in donations. “Every contribution will be matched dollar for dollar until we reach our first $1 million in support,” Duffy noted.
Blockchain Groups Promote Crypto Donation Initiatives
The Blockchain Association, a nonprofit supporting digital assets, has created an online directory of charities involved in relief and recovery efforts for the hurricanes. Organizations like Catholic Charities, The Salvation Army, and Americares are featured, providing direct links for crypto donations.
Curtis Kincaid, Executive Vice President of Marketing and Communications at The Blockchain Association, highlighted the critical services these charities offer, including medical care, food, and shelter.
Crypto philanthropy platform Givepact also raised awareness about how crypto donors can aid relief efforts, listing local charities such as the Florida Wildlife Federation and BeLoved Asheville. Alicia Maule, co-founder and CEO of Givepact, explained that the platform focuses exclusively on cryptocurrency donations to quickly mobilize resources for impacted communities.
The Rise of Crypto Donations
Maule pointed out that crypto donors typically contribute 82 times more than traditional cash donors, representing a significant source of support for nonprofits. The Giving Block’s Annual Industry Report indicates that over $2 billion has been donated using cryptocurrency as of January 2024, with 56% of leading U.S. charitable organizations now accepting crypto.
Duffy believes that cryptocurrency has become one of the fastest-growing donation methods in the U.S. over the last decade, driven by a rising population of crypto investors and the tax advantages associated with donating digital assets. “Donating crypto is much more tax-efficient than cash, as donors avoid capital gains taxes,” he explained.
Navigating Challenges in Crypto Donations
It’s important to note that cryptocurrency donations are currently exempt from wash sale rules. Jonathan Bander, managing partner and head of tax strategy at ExperityCPA, mentioned that investors can sell cryptocurrency at a loss for tax purposes and repurchase the same asset immediately, enhancing their tax-loss harvesting strategies.
However, Bander also acknowledged potential challenges, such as regulatory uncertainty, value volatility, limited charity acceptance, and the need for education on cryptocurrency donations.
As communities work to recover from the impacts of Hurricanes Helene and Milton, cryptocurrency donations present a promising avenue for support, empowering donors to make a meaningful difference in the lives of those affected.
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