Crypto donations surge to aid Los Angeles wildfire victims
Lon Angeles fires
Wildfires have devastated Los Angeles, engulfing over 27,000 acres, displacing more than 100,000 residents, and leaving five dead.
As the fires rage, nonprofits are turning to cryptocurrency to fund critical relief efforts, highlighting a growing trend in modern philanthropy, according to the Cryptopolitan.
A New Frontier for Disaster Relief
The largest blaze, The Palisades Fire, has scorched 17,000 acres since Tuesday, January 7, with no containment in sight. Meanwhile, the Eaton Fire and three other wildfires have forced widespread evacuations, compounding the crisis. President Joe Biden called the situation “devastating,” urging immediate action to assist affected communities.
In response, platforms like The Giving Block and Givepact have launched cryptocurrency-based fundraising initiatives to support local and national organizations. Beneficiaries include the Los Angeles Fire Department Foundation, Regional Food Bank, Baby2Baby, and the Wildland Firefighter Foundation. These efforts have made it easier for donors to contribute using Bitcoin, Ethereum, and other digital assets.
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Tax Benefits Drive Crypto Philanthropy
Cryptocurrency donations offer unique tax advantages, fueling their popularity among donors. Andrew Gordon, president of Gordon Law Group, explained that donating appreciated digital assets allows donors to bypass capital gains taxes while claiming deductions.
“By gifting crypto, donors maximize their contributions while helping charities save on processing costs,” Gordon said.
Nonprofits are increasingly embracing digital assets. As of January 2024, 56% of the top 100 U.S. charities accept cryptocurrency donations, according to The Giving Block. Fidelity Charitable reported a significant rise in non-cash donations, including digital assets, in recent years.
With wildfires ravaging California, cryptocurrency has emerged as a critical tool in mobilizing resources for relief, demonstrating its potential to reshape charitable giving in times of crisis.
Meanwhile, El Salvador’s Congress approved a law granting expedited citizenship to foreigners who donate Bitcoin to support the country’s development. The reform, backed by President Nayib Bukele’s party, will take effect in the coming days.
