Why crypto is part of our ecosystem

We are living in a time of great change in the way money and our digital future is being redefined.

Yes, the proof of work method of verifying crypto transactions needs to be more efficient before Modern Marimba can use it to compensate international artists, sell tickets to concerts, or accept small donations. There is a huge financial incentive (other than literally saving the planet) for crypto mining companies to reduce the electricity they use to verify transactions on various digital public ledgers. Staying curious, educated and growing with this new technology allows us to make better decisions about the future of this organization.

But right now, crypto philanthropy is being used by many nonprofit organizations to build community with those who create large, taxable events in the crypto space. These nonprofits are doing the same type of work as Modern Marimba (but tbh on a much larger scale) and finding ways to maximize the efficiency of large giving.

If you are someone who has created a large, taxable event in crypto and would like to make a donation to Modern Marimba, we have a commerce wallet with Coinbase.

Resources

A lively discussion with Pat Duffy, the co-founder of The Giving Block about where crypto philanthropy is and important lessons from 2021. Is it time for your nonprofit to start accepting cryptocurrency? What are the questions and issues that might come up? We discuss the topic in depth. 

Data from 2021 in Crypto Philanthropy from The Giving Block:

The total donation volume on The Giving Block in 2021 was $69,644,535, an increase of 1,558% from 2020. The average crypto donation size on The Giving Block in 2021 was $10,455, an increase of 236% from the previous year. NFT projects donated $12.3 million to charities via The Giving Block in 2021. Crypto donation volume increased every single quarter in 2021. The Giving Block’s Cause Funds (index funds for crypto philanthropy), established in November, raised $418,200 in their first two months. The Giving Block’s Crypto Adoption Fund (a mission-agnostic index fund for all pro-crypto nonprofits on the platform), established in November, raised $444,700 in its first two months.

U.S. Tax Resources on Crypto

The information provided is for informational purposes only and does not constitute tax advice.

IRS Frequently Asked Questions on Virtual Currency Transactions

IRS About Form 8283, Noncash Charitable Contributions

IRS Charitable Contributions – Substantiation and Disclosure Requirements