Charity is a noble work. It is done for the people in need by organizations, communities and even individuals. Conventionally, charity was done using the fiat currencies but now crypto has also entered this sector. Big charitable organizations such as United Way and the Red Cross Society have also allowed crypto as a donation method.
Some Popular Examples Of Crypto Donations:
- Pineapple fund was created in 2017 by an anonymous investor known as “Pine”. This fund was created with the aim of experimenting with cryptocurrency in philanthropy. Uptill now, Pine has made $55 million worth of crypto donations to almost 60 charitable organizations.
- In 2018, GiveCrypto.org came forward as an organization working towards poverty reduction using crypto donations.
- In 2019, UNICEF also announced a designated cryptocurrency fund that will make and hold transactions using crypto. With this, UNICEF became the first UN organization to accept crypto donations.
Why Do Crypto Donations Have A Bright Future?
- Tax advantages: Many countries have not introduced regulations surrounding the cryptocurrencies yet so donating crypto such as bitcoin and ethereum directly to the organization might not include the additional capital gain tax.
- Anonymity: A lot of organizations and even individuals do not want to attract fame through their contributions thus they like to give anonymous donations, mainly due to data-privacy issues. Crypto is the best method to maintain anonymity. This is because crypto is a private asset. All your personal information is well protected thus you can contribute to such nonprofit projects more openly.
- Cheaper to process: If donations are contributed in cryptocurrencies, it will become easier for the charitable organizations to process them. This is because transactions done in fiat currencies incur higher processing costs whereas transaction fees on crypto platforms are not that high.
List Of Nonprofit Organizations That Accepts Crypto Donations:
- Red Cross: The largest humanitarian network in the world is the International Red Cross Society and Red Crescent network. Its main purpose is “to help all those who suffers, without discrimination”. It accepts donations in Bitcoin using Bitpay.
- UNICEF cryptofund: It has not only accepted but even redistributed the collected donations among the people in need. Donations are accepted in Ethereum and Bitcoin.
- EFF: ELectronic Freedom Foundation is a well known International nonprofit Digital Rights organization. It promotes civil liberties and online privacy while advocating for grassroot activism, policy analysis surrounding technology and innovation. It accepts Bitcoin, Ethereum, and Bitcoin Cash in donations.
- Rainforest Foundation: This nonprofit organization works towards climate change, mainly focusing on deforestation. It accepts donations in Bitcoin, Ethereum, Bitcoin Cash and Litecoin.
- Human Rights Foundation: It focuses on protecting and promoting human rights globally, especially in closed societies. It accepts Bitcoin as well as Ethereum as the donation cryptocurrency.
- GiveCrypto.org: This organization is still working hard towards reduction of poverty around the globe. It accepts donations in Bitcoin, Ethereum, Bitcoin Cash, USDC and Litecoin via Coinbase Commerce.
Conclusion:
Crypto donation is one of the most tax-efficient ways to support non-profit organizations working for various noble causes around the world. This will not only support the philanthropist inside you but will keep you updated with the digital world of cryptocurrency. This can also be a way for you to engage in cryptocurrencies if you want to start investing in them but do not want to begin trading so soon.
