Crypto philanthropy: how to support charities by donating your digital assets
Throughout history, the ways people trade and exchange have evolved considerably, opening the door to incredible benefits. However, the developments have also posed challenges for society, requiring a leap of faith. Cryptocurrencies are the latest revolutionary technology in trading and are increasingly used in the real economy. Investors and enterprises aren’t the only ones seeing their benefits – charities do too. As for now, thousands of nonprofits are accepting cryptocurrencies like Bitcoin and Ethereum for fundraising purposes, including almost half of the top charities in America.
Moreover, more than 320 million donors globally are using their digital assets to support a cause they care about. When people get into crypto, they need to figure out many aspects, like where to buy bitcoin, what opportunities an asset offers, and how it can be used in the real world. While crypto can be a means to pay for a product or a service, it can also be a great way to give back to the community. If you are a philanthropist owning digital currencies, keep reading to find out how to donate them to nonprofits.
Fundraising campaigns
As crypto becomes more mainstream, it is likely that more people will donate their tokens, resulting in a wider base for fundraising. Ukraine received massive crypto donations from those wanting to show solidarity with the country in times of war. While this was a large-scale movement, it is also possible to use social media and contribute to peer-to-peer campaigns. There is no better way to use your crypto than to make a difference in society. For instance, it can provide equal opportunities for women, empowering them to be in control of their finances and lives. You can also donate your crypto to organizations advocating for LGBTQIA+ rights, cancer research charities, and so on.
CSR initiatives
Some people have shown enthusiasm for crypto since its inception, stating that this technology has the potential to change the world for the better. And it looks like they were right, as many businesses are achieving CSR success thanks to crypto. These companies have introduced NFT charity auctions, used ticket sales profits for donations, and launched 1:1 donation matches as well. They are helping sick children, funding educational projects, and investing in mental health initiatives – and it is all possible because cryptocurrencies exist, facilitating the fundraising process with their ease of use. Digital currencies enable organizations to reach a larger pool of donors whom they would not be able to access otherwise.
NFT charitable giving
NFTs are now a global phenomenon, providing incredible opportunities for artists, but it’s hard to ignore their impact on the philanthropic world. NFT fundraising has become an excellent source of donation, allowing organizations to grow their mission. NFT charitable giving gained popularity in 2021, with NFT creators donating significant amounts of crypto (worth more than $12 million). But that was only the beginning; since then, NFT creators kept making a difference, whether by launching NFT charity auctions or donating a percentage of royalties. For instance, the crypto artist duo Hackatao gave $50,000 worth of Ethereum to an organization supporting LGBTIQ rights. From healthcare to wildlife conservation, you can show support to different nonprofits by donating your crypto.
Social impact DAOs
Decentralized Autonomous Organizations (DAOs) have become a significant part of the crypto ecosystem. Simply put, they are digital entities that consist of users managing assets collectively for different purposes, such as governance, investing, and, unsurprisingly, charitable giving. DAOs are a great means to drive real change in society, as they can be set up to accept funds from everyone who wants to make an impact by purchasing governance tokens. The mark that social impact DAOs have made on crypto philanthropy is hard to ignore. These organizations have concentrated their efforts on supporting women’s rights and providing blockchain education, to name just a few.
Donor-advised funds
DAFs, or donor-advised funds, are a popular tool for fundraising, and they are crypto-friendly too. Before getting into details about this type of charitable giving, let’s first clarify the concept. A donor-advised fund is a giving account made at a public charity, offering socially conscious investors an opportunity to tap into their philanthropic nature while receiving income tax benefits. Donors can contribute with money, stock, real estate, or other kinds of assets. While the financial advantages they get are appealing, the real value of contributing to donor-advised funds lies in the impact on society.
Why should you donate your crypto to nonprofits?
Human beings have a strong need to be part of something bigger than themselves. They want to leave something behind and contribute to the well-being of their community. It’s what gives them purpose and meaning in life. This sense of fulfillment can be achieved through charitable giving, and cryptocurrencies are a powerful force to do well nowadays.
Supporting a nonprofit allows you to demonstrate your values; it shows that you care about what’s going on in the world and want to put your money to good use and make a change. “Blockchain for social good” is a famous phrase among enterprises, and many leading figures in the crypto industry are playing their part in using digital assets for great purposes. Donating crypto is a win-win because it reduces your tax obligations. This is because the IRS considers digital assets property, so they are treated like stock. Therefore, crypto donors no longer have to pay capital gains taxes when donating their tokens. This is a great reason to give your crypto to charities, isn’t it? Plus, sending digital assets is convenient and fast, as it requires a few simple steps. You just have to fill out your donation amount on the page and complete the transaction via a QR code or wallet address.
Takeaway
Crypto philanthropy differs in many ways from traditional nonprofit fundraising. It allows organizations to seize new opportunities by reaching many donors worldwide and further making an impact on society. If you want to help create a better world, it’s time to use your crypto for good and donate it to worthy causes.
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