In recent years, donating Bitcoin and other cryptocurrencies to charitable organizations has become a popular way to give back. While crypto donations are still a relatively small part of the overall philanthropic landscape, they offer several advantages for both donors and recipient organizations.
For donors, crypto donations offer a convenient and efficient way to give, with minimal transaction fees and the ability to donate anonymously if desired. For organizations, crypto donations provide a new stream of funding that can be used to support their work. And because crypto donations are often made in small amounts, they can help to broaden an organization’s donor base.
Why Donate Bitcoin?
Why are more and more philanthropists choosing to donate Bitcoin?
The most popular cryptocurrency has four main advantages when compared with fiat currencies or even other digital payment methods:
Bitcoin is global
The cryptocurrency doesn’t know any borders. You can send it to anyone, anywhere in the world without worrying about exchange rates or cross-border fees. That makes it an ideal way to support international causes.
Donating via Bitcoin is a good way to avoid paying high taxes on your donation. In many countries, fiat donations are subject to a variety of taxes, but Bitcoin is not yet regulated in most jurisdictions. This means that you can save a considerable amount of money by donating cryptocurrency instead of fiat currency—savings that are passed on to charitable organizations.
Bitcoin taxation is still new so it can be hard to predict how it will develop, but right now it’s an incredibly tax-efficient way to give. We recommend consulting with a crypto-focused tax accountant to get the most accurate advice for your situation.
Bitcoin donations can be made anonymously, which is ideal for donors who want to keep their identities private. This feature is also useful for international organizations that may have difficulties receiving donations from certain countries due to political reasons.
With Bitcoin, you can be sure that your donation will go exactly where you intended it to. The decentralized nature of the blockchain means that there is no single point of failure that could be exploited by fraudsters. And because all transactions are public, it’s easy to check that your donation has been received and used as intended.
How to Donate Bitcoin
To donate Bitcoin, it’s likely you will have to go through a third-party processor or perhaps a donor-advised fund.
Third-party processors like The Giving Block or Crypto for Charity handle the nitty-gritty of the donation for a small transaction fee—usually around 1%. They encash the donation on behalf of the charity so that the donee organization can use it however they see fit.
Charitable organizations partner with these processors to make it as simple as possible for donors to support their causes. All you have to worry about is sending the correct amount of Bitcoin to the right wallet address.
Another way of giving Bitcoin is through a donor-advised fund, like the Fidelity Charitable Gift Fund. These work similar to how a checking account or savings account does at a bank. You can deposit cryptocurrency into the account and recommend charities withdraw those funds at a later date. The best part? You can claim an immediate tax deduction on your charitable contribution!
Who Accepts Bitcoin Donations?
More and more charities are starting to accept Bitcoin donations. We suggest looking for charities that focus on issues you truly care about, and that also have a clear and public Bitcoin donation policy.
Here are some examples of charities that accept Bitcoin donations:
Internet Archive started in 1996 with archiving the entirety of the internet as its goal. One of its most famous projects is the Wayback Machine, which has made more than two decades of online activity accessible to researchers, historians, and curious internet users.
The Rainforest Foundation works to protect the rainforests and the indigenous people who live in them. They have a long history of effective advocacy and partnerships with Indigenous Peoples’ organizations.
Electronic Freedom Foundation
This organization has been fighting for user privacy and free expression since 1990. As more of our activities migrate online, the Electronic Freedom Foundation is working to expand and defend user rights in the digital world.
The Water Project
The Water Project is working to bring clean water to communities in sub-Saharan Africa. They have helped over a million people gain access to clean water and sanitation.
Greenpeace is one of the world’s leading independent environmental organizations. Their investigations, media coverage, and activism have played a vital role in protecting the environment. They work to promote sustainability by staging peaceful protests to create change.
Freedom of the Press Foundation
As you can tell from its name, this organization is all about protecting press freedom. They work to support journalists and news organizations that are committed to transparency and accountability.
The organization develops encryption tools for journalists, offers training on security and privacy, and provides grants to news organizations working on investigative journalism projects.
The Tor Project
The Tor Project is a non-profit organization that develops the Tor software, which allows users to browse the internet anonymously. The Tor software is used by journalists, human rights activists, and ordinary people who want to protect their privacy online.
Bitcoin is a powerful tool that can be used to support causes you care about. By donating Bitcoin, you can help fund important work being done by charities all over the world. You can also take advantage of the fact that Bitcoin donations are tax-deductible in many jurisdictions.
For more news and articles—both in and out of the crypto world—to help you make informed decisions, be sure to check out the rest of our website!