Donations in Cryptocurrencies : What Are The Advantages?
Donations in cryptocurrencies are growing. On November 30, The Giving Block reported a 583 percent increase in bitcoin donations, totaling $2.4 million. That day is considered the largest crypto fundraising day.
Over $300 million are contributed annually using cryptocurrencies and donating according to one of the world’s largest cryptocurrency companies, Coinbase, has the following advantages:
Donating cryptocurrencies directly, instead of passing by dollars can make "your tax-deductible contribution could go much further," according to Coinbase. The tax on capital gains is approximately 20%.
According to The Giving Block, some non-profit organizations are now accepting cryptocurrency donations, with the amount donated in crypto increasing by 839 percent for Giving Tuesday. United Way to UNICEF is one of the organizations that has begun accepting certain types of cryptocurrency donations, and a number of smaller charities are now following suit. The Humane Society of Utah is also taking Bitcoin, Ethereum and Dogecoin. Humane Society Executive Director Vaughn Maurice sees great promise for the future of technology in the charitable sector.
"When people understand how easy it is, people that are into crypto can know how to spend it and know how to deal with it fairly easily," he says. "I think it’s something that will catch on. It’s like anything that’s relatively new as a concept. It’ll take time for people to learn or even accept crypto and get used to that as an idea, but I think it will. I’m very positive about it."
Donating cryptocurrency is a "quick, easy and convenient" process. Their unique address wallet or their QR code is more efficient than going through credit card payments.
Donations made through cryptocurrencies increase the credibility of the blockchain and can contribute to reaffirming corporate social responsibility. On The Giving Block website, the sentence mentioned is using "Blockchain for Social Good".
However, we cannot ignore the environmental effect of cryptocurrencies. Due to the emergence of cryptocurrencies and their integration into other activities such as charitable giving, this element must be carefully considered.
Source : Utah Business, TheGivingBlock
