Digital Altruism: How to Donate Cryptocurrencies to Charity
- Created: Friday, 04 September 2020 04:28
If there was ever a time where the world was in need of a little help- it’s now. The future of donating belongs to crypto.
In the face of the current pandemic, massive forest fires consuming the globe, ever increasing poverty and illness, and oppression running rampant throughout our societies, charities have more than their work cut out for them. With widespread globalization, it’s now both easier, and more complicated, than ever to get needed funding to the places that require it the most.
As we face these problems and so many more, there’s also a timeline to be considered. So many of these devastated areas are already behind in getting their needs met, so adding catastrophe on top of the crisis means that they need those funds- yesterday. If you’ve ever dabbled in cryptocurrency- or sat at your Bitvavo exchange dashboard- you know just how simple it is to transfer bitcoin and other cryptocurrencies in the blink of an eye. While, for a long time many believed that crypto was a realm for only the tech savviest amongst us- everyday users know different. Crypto’s offer a simple, cost effective, and transparent way to get money where it’s needed most. And charities are finally starting to see that.
Why Charities Love Bitcoin
You may have noticed that within the last year, more and more charities have been pushing to accept different types of cryptocurrency. This isn’t by accident. There are some incredibly favorable reasons that charities are starting to move towards digital currencies, and most of them have little to do with hygiene practices and governmental overreach pushing for centralized cashless societies. In fact, it’s quite the opposite.
Cryptocurrency donations actually make the entire process of funding- from donation to tail-end recipient, more streamlined and transparent. The funds are near instant, with zero hold ups dependent on currency conversion or branch communication. Because cryptocurrencies are decentralized, there is no down-time or excessive fees that are accrued as cash moves through traditional financial systems. So fast cash with few- if any- processing fees involved. Something that charities worldwide have been searching out for ages.
The cryptocurrency sphere is also incredibly secure and still largely anonymous, making it much simpler for silent donors to stay that way. As transactions are based on non-descript wallet addresses, instead of personally identifying bank details. It makes it supremely difficult for analytics companies or pesky journalists to tie large donations back to donors who would prefer to keep their name out of it. The cryptocurrency industry is also near constantly updating security measures, making sure that those funds not only get where they’re going, but are verifiably real and difficult to intercept.
What Crypto Can Do For You
While you may not explicitly need to have a motive for doling out your crypto to charity, there are some big benefits that bitcoin users can enjoy in return for their good deeds. In fact, when considering cryptocurrency donations from a tax standpoint, it’s a situation that is just as beneficial to the donor as it is the recipient. This is largely because crypto donations don’t trigger taxable events. So that means that crypto donors can use the asset that has the lowest tax basis to help reduce their taxable income in the next year.
Donors can also choose to sell their bitcoin or other cryptocurrencies and gain access to its built-in loss. This capital loss can be applied to future tax seasons and the money gained can then be donated. Helping out people in need, while at the same time mitigating your own tax burden. If you’re not particularly worried about taxes or capital losses in this sense, there are some other pretty awesome incentives to donating to your favorite charity in crypto.
Cryptocurrencies are largely borderless, which means that your funds and your charity won’t lose as much money in transaction fees, should they need to send the cash to other places around the world. Blockchain technology could also offer your charity of choice the chance to create their own public ledger system, helping them to balance their books and maintain total transparency- something that donors yearn for.
Some of the Best Charities that Accept Cryptocurrency Now
A number of charities have gleefully added their name to the roster of those that are embracing the future of bitcoin. Here are a few fan favorites should you consider investing in the future of crypto and the world:
- Crypto Charity Fund
- UNICEF Game Chaingers
- Building Blocks
- Gift coin
- National Philanthropic Trust