Various charitable foundations are now accepting cryptocurrency donations in the efforts to help victims of wildfires in Los Angeles, CA. Wildfires have ravaged over 27,000 acres across the region, forcing more than 100,000 residents to flee their homes.
According to a report from the Washington Times, the largest blaze, named The Palisades Fire, began on Tuesday, January 7, fueled by strong winds. It has grown to more than 17,000 acres and remains entirely uncontained.
The second wildfire dubbed the Eaton Fire, erupted Tuesday night and has led to evacuation orders for approximately 40,000 people. Three additional wildfires have since ignited, worsening the crisis across Southern California.
Over 100,000 people have been ordered to evacuate communities impacted by the Southern California wildfires. At least two people have been killed. And many more are injured – including firefighters.
It’s devastating.
To the residents of Southern California: We are with you. pic.twitter.com/N0oValzP7l
— President Biden (@POTUS) January 8, 2025
At least five people have lost their lives, and several others have been injured. President Joe Biden described the wildfires as “devastating” and emphasized the urgent need for aid.
Nonprofits turn to cryptocurrency for relief efforts
As the fires rage, nonprofits are turning to the decentralized finance industry to support relief efforts. On Wednesday, The Giving Block, a crypto donation platform, launched an emergency response fundraiser to aid those impacted by the wildfires.
“The Giving Block has set up an emergency response fundraiser to support charitable organizations working in the Greater Los Angeles Metro Area to assist with humanitarian and disaster relief efforts,” the organization said.
Devastating wildfires are sweeping through Southern California causing widespread destruction.
Our LA Wildfires Emergency Fundraiser provides aid to those impacted. Donate crypto, stock, DAF or card to orgs assisting with food, shelter, and medical care.https://t.co/qEo5pA9KO4
— The Giving Block (@TheGivingBlock) January 8, 2025
The fundraiser allows donors to contribute cryptocurrency to seven nonprofits, including the Los Angeles Fire Department Foundation and Regional Food Bank, First Responders Children’s Foundation, and Global Empowerment Mission, among several others.
Donors can also give through stocks, donor-advised funds (DAFs), or traditional payment methods.
The crypto-focused platform Givepact is also facilitating donations to organizations such as Baby2Baby, Wildland Firefighter Foundation, California Fire Foundation, Los Angeles County Animal Care Foundation, and the California Community Foundation.
Crypto philanthropy is growing on people
According to a CNBC report, charitable entities are increasingly embracing digital assets as a viable donation method. As of January 2024, 56% of the top 100 U.S. charities were accepting defi donations, according to The Giving Block.
Kyle Casserino, vice president and charitable planning consultant at Fidelity Charitable, highlighted the growing appeal of crypto giving: “A lot of folks have begun to realize that crypto giving is hugely beneficial.” Fidelity Charitable, a public charity, accepts donations in Bitcoin, Ethereum, and Litecoin.
DAFgiving360, formerly Schwab Charitable, reported that 63% of its contributions in fiscal year 2024 came from non-cash assets, including digital assets and stocks.
Pro-crypto lawyer: Tax advantages drive crypto donations
Andrew Gordon, a tax attorney and president of Gordon Law Group, believes cryptocurrency’s tax advantages are major draws for donors. When crypto assets appreciate, selling them incurs capital gains taxes.
However, donating directly to nonprofits allows donors to bypass these taxes entirely while still claiming the charitable deduction if they itemize their taxes.
Gordon explained how digital assets are aiding tax reliefs, saying, “By gifting appreciated investments, you can avoid triggering capital gains taxes, which saves both the donor and the charity money.”
Donors who have held digital assets for more than one year can deduct its fair market value, with a deduction cap of 30% of adjusted gross income for public charities. “It’s a good strategy, especially with crypto and Bitcoin at all-time highs,” Gordon added.
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