All nonprofit and charitable organizations are continuously finding ways to make philanthropy sustainable in the long run, by working for the masses. In the process, they’re trying to generate income from uncommon sources. From city walkathons to local events, they are leaving no stone unturned to generate the required amount of funds, sponsors and revenue for the cause of good. And of late, they’ve turned to the cryptocurrency mode, by convincing crypto investors to make donations for social causes that help the poor, underprivileged and the neglected ones. FYI, donations in the form of cryptocurrency and Bitcoin is a win-win situation, as people want to donate crypto to their favorite organizations, instead of cash or fiat money. It is easy, safe and fast, with NO tax deductions. It is now widely accepted by all nonprofits and charities.
Donations via Cryptocurrency
Digital currencies like Bitcoin (BTC), Litecoin (LTC), Dogecoin (DOGE), USDT Tether Stablecoin, Ethereum (ETH), etc. opens up a new vista for making a significant amount of donations to charitable institutions. Most importantly, it (cryptocurrency) offers transparency in donations, apart from other vital aspects like efficiency and security. As blockchain technology governs cryptocurrency payment, all kinds of donations made are 100% safe from phishing attacks and hacking. So, if you are a crypto investor and a philanthropist, you can certainly be a source of hope and light for the charities, by best utilizing the borderless (cross-border) and decentralized nature of payments, which bypass all kinds of financial intermediaries and also significantly reduce transaction costs.
How Cryptocurrency Payments Enhance Transparency?
The standard architecture behind the operation and functioning of cryptocurrency is blockchain, which promotes transparency, fairness in dealings and accountability in charitable transactions. The advanced blockchain technology makes it possible for donors to track and confirm their donations to non-profit organizations, thus ensuring the highest levels of transparency in the distribution of funds to charities across the globe, as well as locally. And, due to the availability and access to verifiable evidence, it is able to clearly verify all the donations of any amount on a particular date and time. This automatically generates confidence among charitable organizations and donors.
Cross-Border Donations in a Quick and Efficient Manner
All international donations to the charity sector are no longer plagued by inordinate delays and complications. Previously, the traditional techniques of payments like bank transfers or wire transfers would take days to process, apart from aspects like high processing fees and currency exchange rate fluctuations. But with cryptocurrency, such red tapes, bottlenecks and hindrances are done away with. Today, international donors can send funds to charities and NGOs anywhere in the world, in a blink of an eye. This ensures that the said donation money or fund is delivered to the recipient in a quick and efficient manner, especially to those who really need it.
Fostering Individual Independence in Underprivileged Societies
For those who are living in underdeveloped and third-world countries, charity crypto payment or crypto-based philanthropy is showing huge socio-economic implications in a positive way. Popular digital currencies like BTC, ETH, LTC, DOGE, SOL, ADA, USDT, etc. provide a direct access to funds in the form of donation money, thus automatically promoting financial inclusion in geographic regions, where there’s practically no access to conventional banking systems and institutions. And, without any interference of financial intermediaries, this socio-economic independence and empowerment is enabling residents to be a part of the economy as a whole, improve their lifestyle and standard of living.
Privacy and Anonymity of Donors
Another big advantage of cryptocurrency payment through dedicated platforms and exchanges like “UniPayment” is donor anonymity & privacy. In fact, a majority of international donors prefer privacy and anonymity while making donations to charities, while a few prioritize their names to be displayed for the sake of brand promotion. A lot of donors, while staying anonymous, support good causes with cryptocurrency donations, which definitely makes an impact on ordinary lives and the society as a whole. And, all of this is achieved, by maintaining a high degree of anonymity, which is not possible through conventional donation methods.
Financing Good Initiatives
Cryptocurrency donations have made it possible to fund creative ventures that overtly support a noble cause, which are not funded by the government or central institutions. In fact, blockchain technology has made it possible to create platforms for crowdfunding and philanthropic causes. Today, direct and unhindered financial support can be provided to grassroots initiatives, social entities and charities through the use of cryptocurrency and Bitcoin. This is how a direct connection is established between social projects and donors across the globe.
Mechanisms for Volatility Stabilization
As cryptocurrency is highly volatile and dynamic in nature, certain mechanisms are in-place to overcome this inherent problem. This is proving to be highly effective for charitable organizations that were previously suffering from this increased volatility market, which affected their earnings. This market stabilization is achieved through the use of USDT stablecoins, correcting price swings and by using digital currencies that are backed or supported by verified crypto assets. A more stable mechanism for charity funding in the bitcoin domain is being worked out by subject-matter-experts on niche areas like volatility management and funds stabilization.
Tax Breaks & Incentives
A majority of cryptocurrency donations provide considerable tax advantage and incentive for crypto philanthropists or donors. Just as regular donations, all crypto donations offer tax benefits, in the form of exemptions and deductions. These tax breaks and credits encourage donors to donate ‘heavily’ for social causes to charitable institutions. This is how cryptocurrency-based philanthropy is being promoted in a big way.
Final Words
In recent years, the use of cryptocurrencies in charitable and philanthropic institutions have grown significantly, opening up new vistas for socio-economic liberation, improved living standards, transactional efficiency and transparency. Cryptocurrency ensures quick cross-border donations to non-profit entities, thereby directly benefiting those who are in dire need of it. Digital currencies in charitable payment are truly revolutionizing philanthropic causes and changing the lives of millions of people who are deprived of their rights and living in miserable conditions across the world.
