New Ways to Give: Many Charities Now Accept Cryptocurrency Donations
Cryptocurrency, whose invention in 2009 first brought the world Bitcoin, has largely been on the rise in value and popularity for over a decade. Since then, other forms of the blockchain-based digital currency known as crypto have emerged. The total value of all cryptocurrencies, now used by over 100 million users globally, currently exceeds $1 trillion. Resourceful and tech-savvy charities and nonprofits have taken notice, and some are beginning to accept crypto donations.
Cryptocurrency May Strengthen Economies In Developing Countries
Many may not know that from its inception, crypto has been envisioned by some as a means for decentralizing global wealth and strengthening economies in low-income or developing countries. Almost nowhere is this more valuable than in Sub-Saharan Africa.
Simone’s Kids in Nakaseke, Uganda provides education and meets basic needs for children in order to help them break the cycle of poverty. We strive to give each student a successful future through education, healthcare, adequate nutrition and ministry. Donating Cryptocurrency is one of the most tax-efficient ways to support the mission of Simone’s Kids! You can check out more information at: cryptocurrency – Simone’s Kids. Your donations help purchase school supplies, textbooks, food, and other necessities for Ugandan students.
Cryptocurrency Donations Benefit Both Charities and Donors
Charitable crypto donations offer significant benefits. The Giving Block, which is designed specifically to help nonprofit and charitable organizations accept the currency, is currently the most popular platform. Such platforms help charities benefit from crypto donations in a number of ways:
- Bypasses the capital gains tax for donors
- and charities. Because crypto donations aren’t subject to the capital gains tax for either the donor or the recipient, charities receive the full value of donations.
- Offsets other tax obligations, encouraging more giving. Crypto holders must pay taxes on the currency they bought, sold, received, or exchanged during the year as part of their capital gains. However, these can be offset by charitable donations, a major incentive to donate cryptocurrency to avoid tax each year.
- Diverse funding options. Crypto donations diversify income for charities and nonprofits. Because the majority of crypto owners are under the age of forty, organizations that accept this currency can tap into a new donor pool. In doing so, they make younger generations feel valued, which encourages donor support.
- Requires minimal effort and resources. Crypto platforms automate the process of receiving donations and generating tax receipts, so nonprofit staff can spend valuable time on other efforts.
- Is becoming increasingly secure. As the crypto market grows in value, the infrastructure for secure storage and policies for dispute resolution increase and solidify as well.
For more questions: FAQ – The Giving Block
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