Miami Tech & Startup News

Miami philanthropy goes web3 with The Giving Block’s new fund for crypto donations

Miami philanthropy goes web3 with The Giving Block’s new fund for crypto donations

The Giving Block launches its Miami Impact Index Fund, enabling donors to support nonprofits with a single crypto donation

By Riley Kaminer

Now, 83% of millennial millionaires own crypto, according to research from CNBC. What’s more, 53% have at least 50% of their wealth in crypto, while nearly a third have at least three quarters of their wealth in cryptocurrencies. Compare that to baby boomers, only 4% of which own any crypto.

Yet this generational shift in attitudes towards digital currencies still has yet to be fully reflected in the reality of most daily transactions (unless, perhaps, you live in Miami Lakes).

Miami-based The Giving Block is bringing philanthropy into the web3 space by enabling nonprofits to accept crypto donations. The company has already begun to have an impact on this $471 billion industry, having accepted around $70 million in donations last year alone.

The origins of The Giving Block can be traced back to the crypto bull market of 2017-2018, when co-founders Alex Wilson and Pat Duffy saw the opportunity for nonprofits to accept cryptocurrency.

“We began to realize what a huge donor demographic crypto users would become and how very few nonprofits at the time were even thinking about crypto right, much less accepting it,” Wilson told Refresh Miami. Fast forward to today, and The Giving Block’s infrastructure has enabled upwards of 2,000 charities to accept crypto.

Donating in crypto is a win for both the philanthropists and the organizations. The IRS classifies crypto as property for tax purposes. Philanthropists receive a tax deduction for the fair market value of their asset, while also avoiding the capital gains tax they would have incurred. And because they are donating to a 501(c)(3), the organization won’t be paying any tax either. 

Wilson asserts that donating in crypto versus cash could result in a 20-30% savings. This is not dissimilar to donating stocks, for example. But Wilson underscored that these sorts of donations have been inaccessible to everyday consumers: “Crypto has democratized philanthropy and made giving large amounts a lot easier and more tax efficient.”

The Giving Block has just announced the launch of its Miami Impact Index Fund, which will enable donors to support nonprofits with one single donation. Proceeds of the fund will be shared evenly across the various organizations, including Chapman Partnership, Jackson Health Foundation, and United Way Miami among others.

This initiative is part of the company’s Caring with Crypto campaign, which aims to raise more than $20 million for nonprofit organizations. Jared Isaacman, CEO of Shift4, The Giving Company’s parent organization, has personally pledged to match the first $10 million in crypto donations through the initiative. So far, Caring with Crypto has raised $12 million for hundreds of charities.

In addition to this initiative, The Giving Block will be partnering with The Miami Foundation for Give Miami Day on Nov. 17, enabling Miamians to donate in crypto for the first time since the event’s inception in 2012.

“Giving back to our community is the core reason behind the Miami Movement. Innovative companies, just like The Giving Block, are a clear sign that we are on the right track of building an economy — and a future — that delivers for everyone,” said Francis Suarez, Mayor of the City of Miami.

Learn more about the Miami Impact Index Fund and donate by visiting The Giving Block’s website.

In photo at top of post: The Giving Block co-founders Pat Duffy, left, and Alex Wilson.

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Riley Kaminer