Learn How To Donate Crypto
Back in 2017, the use of cryptocurrency for charity was tested by the Pineapple Fund, a philanthropic organization founded by an anonymous crypto investor referred to as “Pine.” Pine contributed $55 million in bitcoin to 60 charitable groups that focused on various issues like social justice, the environment, mental health, and homelessness.
Since then, people and organizations have increasingly turned to cryptocurrency to make charitable donations. For instance, philanthropic groups such as United Way and the international Red Cross now accept crypto contributions.
Alleviating poverty through direct community donations of cryptocurrencies has been the mission of GiveCrypto.org since 2018. Then, UNICEF became the first United Nations agency to own and use cryptocurrencies through a dedicated Cryptocurrency Fund in 2019. A total of eight bitcoin and 2,267 ETH (amounting to more than $5 million) have been donated to the UNICEF Cryptocurrency Fund as of April 6, 2021. Additionally, a newly launched giving platform called Daffy sends all donations to charitable organizations in cash and allows donors to select from Daffy’s network of over 1.5 million organizations.
As a result of crypto’s unique technological innovation, donors can contribute from any place on Earth instantly and anonymously without suffering hefty fees, improving the efficiency, equity, and convenience of philanthropic activities
Cryptocurrency Donations May Be Less Expensive for Non-Profits To Process
The 2020 Global Trends in Giving Report found that 63% of donors around the world choose to donate online using debit or credit cards. However, Charity Navigator, a non-profit that evaluates online donation processing providers, estimates processing fees on credit card payments can range from 2.2% up to 7.5 %, reducing the amount of money that charities actually receive.
What kind of impact might this have? Let’s suppose you wanted to make a $1,000 donation to the charity of your choice.
- Use a credit card to donate: The charity may have to pay up to $75 in processing fees. The final amount that the charity will receive is $925.
- Donate cryptocurrency: A processing fee of $8.70 would be charged if the same amount was donated in bitcoin (this figure is calculated from io‘s median processing fee as of April 6, 2021). The final amount that the charity will receive is $991.28.
Stablecoins Like Bitcoin Help Reduce the Volatility of Cryptocurrency Donations
Charities that want to reap the benefits of cryptocurrency and avoid the danger of volatility can receive donations in USDC or other stablecoins. USDC is a fully backed cryptocurrency that can be redeemed for U.S. Dollars.
Tax Benefits Are Possible With Crypto
Consider this scenario: suppose you purchased $2,000 worth of bitcoin last year. Then, the fair market value rises to $5,500 by April 2021. Instead of keeping the money for yourself, you opt to give it all away to your preferred IRS-approved charity. The following are two possible outcomes for your donation:
- Donate in cash by selling bitcoin: A long-term capital gains tax of 20%, not including insurance surtax or local taxes, may be incurred by selling the crypto first and then donating the cash. As a result, this might cost you roughly $700. The final amount that the charity will receive is around $4,800.
- Donate cryptocurrency directly: You can save more money on taxes if you make a direct donation with bitcoin. You may be able to avoid paying capital gains tax on your bitcoin if you make a direct contribution. The final amount that the charity will receive is around $5,500.
Protect Your Privacy With Crypto
For contributors, data protection and privacy concerns are becoming increasingly important. Give.org conducted a survey in 2021 that found that most Americans have concerns about data privacy when it comes to donations. These issues can all be addressed by using crypto.
Donating cryptocurrency directly to a charity could safeguard your private information and guarantee that more funds go to the causes you support.
Which Non-profit Organizations Accept Cryptocurrency Donations?
No matter what you’re interested in supporting, be it the right to freedom of expression, human rights, or breast cancer awareness, there are plenty of charities that allow you to donate cryptocurrency nowadays. The following are a few well-liked options:
- Red Cross: The Red Cross and Red Crescent organizations are the world’s largest humanitarian network, with operations in nearly every country globally. They are focused on helping those in need, regardless of the cause of their suffering, be it in times of war, in the wake of a disaster, or as a result of chronic poverty. They accept Bitcoin via Bitpay.
- United Way: It is United Way’s goal to create an environment where everyone has a chance to succeed, and the entire community benefits. Their efforts are fuelled by the generosity and dedication of 9.8 million donors and 2.8 million volunteers who donate their time, money, and voices to help others. They accept Bitcoin via Bitpay.
- org: Since its founding in 2018, the non-profit GiveCrypto has been distributing cryptocurrency to the poor. More than 5,000 individuals in 13 countries have received over $300,000 worth of cryptocurrency via GiveCrypto. They accept Bitcoin, Bitcoin Cash, Ethereum, Litecoin, and USDC.
- Daffy Charitable: Daffy’s mobile app makes it easy to donate cryptocurrency to over 1.5 million non-profits and charities, with the proceeds going directly to your chosen organizations in cash.
- Tor Project: Since its inception, the Tor Project’s mission has been simple: To ensure that everyone has secure and uncensored access to an unrestricted Internet. However, Tor is not just a mere computer program. It’s a passion project put together by a group of people that care deeply about human rights. They accept Bitcoin, Augur, Dash, Litecoin, Monero, Stellar Lumen, ZCash, and Ethereum.
- Internet Archive: The Internet Archive was founded in 1996 to archive content on the Internet, which was just starting to gain popularity at the time. Same as newspapers, online content was fleeting; however, unlike newspapers, nobody was preserving it. They now have access to over two decades of internet history via the Wayback Machine and collaborate with over 625 libraries and other organizations through the Archive-It program to discover significant websites. They accept Bitcoin, Bitcoin Cash, Ethereum, XRP, and ZCash.
- Electronic Freedom Foundation: When the Electronic Frontier Foundation (EFF) was founded in 1990, the organization’s mission was simple: to protect individuals’ and businesses’ right to privacy, freedom of expression, and innovation through grassroots activism, policy analysis, impact litigation, and technology development. Their goal is to make sure that people’s rights and liberties are better protected as technology advances. They accept Bitcoin, Bitcoin Cash, and Ethereum.
- Human Rights Foundation: The Human Rights Foundation is an impartial, non-profit organization dedicated to advancing and defending human rights worldwide, particularly in oppressive regimes. As a human rights and democracy advocate, HRF aims to unify people from all walks of life. Protecting and promoting freedom around the globe is their primary goal. They accept Bitcoin and Ethereum.
- Freedom of the Press Foundation: Among the many ways the group works to protect and strengthen the press’s First and Fourth Amendment rights is through the innovation of encryption tools and the documentation of press attacks. Their activities also include educating news outlets on digital security protocols and advocating for the freedom of information. They accept Bitcoin, Bitcoin Cash, Ethereum, Litecoin, and ZCash.
- Khan Academy: For students who want to learn at their own pace from outside the classroom, Khan Academy provides practice exercises, video lectures, and an individual learning dashboard. The platform covers a wide range of subjects, including math and science, as well as history, art studies, and economics. They use cutting-edge adaptive technology to identify students’ capabilities and learning gaps as they progress from basic arithmetic to calculus. They accept Bitcoin, Bitcoin Cash, Litecoin, and Ethereum.
- The Water Project: Their mission is to alleviate the suffering of those in Africa who lack access to safe drinking water and sanitary toilets by providing them with sustainable water projects. They accept Bitcoin, Bitcoin Cash, Ethereum, Litecoin, and USDC via Coinbase Commerce.
- Greenpeace: Peaceful protest and innovative communication are the cornerstones of Greenpeace’s worldwide environmental campaign, which aims to bring attention to global environmental issues and advocate for crucial solutions for a greener and more peaceful future. They accept Bitcoin.
- Rainforest Foundation: They are a non-profit organization that works at the ground level to protect indigenous people’s land rights. Direct investment in indigenous communities allows them to provide the means, education, and resources indigenous people need to safeguard their rainforests. They accept Bitcoin, Bitcoin Cash, Ethereum, and Litecoin.
- The Reagent Project: They strive to connect under-resourced researchers with surplus scientific instruments and reagents sitting in labs around the United States. They accept Bitcoin, Bitcoin Cash, Ethereum, Litecoin, and USDC via Coinbase Commerce.
If you’re interested in other options, The Giving Block keeps an up-to-date list of charitable organizations that accept crypto.
Cryptocurrency donations have grown in popularity over the last few years. If you’re planning to donate Crypto, we hope this article has enlightened you on what you need to know.