In the last few years, hundreds of millions of dollars in cryptocurrencies have been donated to causes, ranging from large anonymous Bitcoin donations like the Pineapple Fund to thousands of small individual donations. One might want to use their crypto coins for donation due to it being tax-efficient, showing social responsibility from a corporate viewpoint, being a quick and convenient donation process, and especially if you’re constantly looking to facilitate the adoption of Bitcoin and other cryptocurrencies.
Okay, how do you do that? Let’s go through the steps on how to quickly donate from any country in the world to any global nonprofit, charity, and project without facing high transaction fees.
Donate cryptocurrency directly to the nonprofit organization
Any IRS-recognized charitable organization incurs fewer capital gains tax and your contribution will be furthermore tax-deductible if you donate through crypto. Selling Bitcoin and donating the amount in dollars, you may incur taxes up to 20%, and based on the final donation you want to give, it will deduct hundreds of dollars. However, if you were to donate Bitcoin directly to the charity’s crypto wallet, you may not pay any capital gains tax and the final donation the charity will receive will be the fair market value of that Bitcoin.
Donate via crypto instead of a credit card
A considerable amount of donors globally do prefer to donate via debit or credit card, due to it being an online procedure. However, transaction fees range from 2 to 7% and it can reduce the actual amount of donations organizations globally receive. However, donating via crypto incurs less financial losses where donating 1,000 USD worth of Bitcoin can only apply to a transaction fee anywhere equal to minus eight dollars approximately.
Research your options
There is a range of popular options where you can donate to nonprofits that accept crypto. Whether you are looking to support humanitarian relief, ecosystems, children’s rights and education, or even animal rescue, there are platforms like the Giving Block that facilitate the process of donating crypto to different charities and projects. Non-profit organizations such as Food for Life Global, Watsi, Red Cross, Save the Children, etc. are accepting cryptocurrency donations so that people have more options of supporting their preferred charity.
For instance, Food for Life Global is a nonprofit organization that is operating in over 60 countries. Their main goals and principles are promoting peace globally and advocating to end world hunger by distributing plant-based meals to people in need. They are the world’s largest food relief organization and have managed to serve over 7 billion free meals globally. Their organization also includes projects related to disaster relief, education, animal rescue and care, and sustainable agriculture.
Bitcoin, Ethereum, Litecoin, ZCash, Gemini Dollar, Chainlink, Dai, and other common cryptocurrencies are accepted by Food for Life Global. This nonprofit is also supported by the new Milk and Butter Tokens that provide a nice way for token holders to make a measurable impact on world hunger through a voting system, wherein the winning charity receives 5% of all transactions on the Butter token. To date, in just 6 weeks, their charity tokens have donated close to $400,000 to food relief charities, including Food for Life Global, Action Against Hunger, and Mr. Beast Philanthropy.
The Milk and Butter Tokens tokenomics are what makes them stand out above other so-called “charity tokens,” explains lead developer, Christian Claypool. “Our tokens are deflationary, their total supply decreases over time; 5% of transactions using the Butter token are collected by the Butter Token contract and sold into BNB that is reserved to be collected by the charity wallet, liquidity is locked until 2022, and our entire development team is doxxed.”
Source: Twitter
In just one week after the successful launch of the Butter Token, the Nevada-based LLC made a generous impact on food insecurity by donating $12,929 accrued by Butter Token’s wallet to Food for Life Global.
Milk Token and Butter Token have a worthy goal: to become the Binance Smart Chain’s go-to mechanisms for contributing to charitable organizations. This goes hand in hand with Food for Life Global’s principles by advocating for a cost-efficient charity and ensuring sustainability globally.
Food for Life Global also has a donation wallet on the Giving Block where crypto enthusiasts can donate any number of coins accepted on the platform, including Bitcoin (BTC), Ether (ETH), Litecoin (LTC), Bitcoin Cash (BCH), Zcash (ZEC), Doge (DOGE) Gemini Dollar (GUSD), Basic Attention Token (BAT), Chainlink (LINK), DAI (DAI), The Graph (GRT), UMA (UMA), Storj (STORJ), Ox (ZRX), and 1inch (1INCH).
Filling out your donation amount is similar to how you would donate cash online and after that, you use your unique wallet address or QR code for the donation to be completed. Due to filling in the information, such as your email, you will receive your tax receipt to confirm your donation.
Conclusion
Lower transaction costs by not involving any third-party financial systems cost savings due to not being tied to geography, and cryptocurrency donations being a completely transparent process, characterizes just some out of the many benefits to donating crypto. Through blockchain technology, a donor can see how their donation is being used too and this increases trust in charitable giving.
Non-profit organizations that accept cryptocurrency donations, such as Food for Life Global are not only advocating for welfare, equality, non-violence, and health globally, but they are also crypto-friendly by advocating for crypto adoption. A cryptocurrency donation to nonprofits means that they have cryptocurrency wallets and are active participants in the community. The more charities that accept cryptocurrency, the more mainstream it will become.