Blockchain technology and cryptocurrency are not only being progressively recognized in the market but with every attribution, it is contributing to this era of development. Cryptocurrencies are being accepted and used in many different fields that are not even related to banking.

If you are wondering whether what good can cryptocurrency donation cause to the charities or non-profit organizations - the answer is simple. One has exposure to a much larger audience (donors), accepting donations from anywhere in the world, as cryptocurrency is borderless, and the technology behind crypto can be used for many purposes. At the same time, the organization can continue to stay focus on their communities and make a change in society.

As per the Global NGO Technology Report, cryptocurrency donations represent a use as a payment method of 1-5% for charitable donations, with the growth of +100% in some countries.

In this blog, we have listed 10 Benefits for donating in Cryptocurrency:

1. Donation with cryptocurrency has the benefit of low taxes or no tax at all, meaning the charity will receive your entire contribution to the cause that you intend.

2. A donation in fiat currency can be expensive due to the charges or fees such as international exchange fees, changing the currencies, banking fees, capital gain taxes, and so forth. Donation with cryptocurrency can ease the expense as it is borderless and does not need intermediaries. The countries with high-value currencies can be rest assured that their contribution is not being used for banking charges but for the core cause they intend to contribute. Also, it is beneficial for the charities that belong to the country’s low-value currency as they can attract donations from high-value currency countries without the need to worry about the fees and charges.

3. The banking process can be lengthy; however, with cryptocurrencies, the donor can directly transact through the platform without the need to go through the time-consuming process.
Also Read, All You Need To Know About UNICEF Crypto Fund

4. Apart from being an expensive and lengthy procedural method, the completion of international transfer takes days or sometimes even weeks. While making a transaction with cryptocurrency is comparatively faster than international fiat transactions. Unlike fiat transactions, the crypto exchange is verified through blockchain, and the transaction will be completed within minutes.

5. Cryptocurrency, through its technology - blockchain, brings transparency in the process. The donor will be assured if its donation is going directly for the charity work than being skimmed.
 

6. Blockchain technology also features decentralization and immutability along with transparency, meaning the crypto donation that one makes would stay in the ledger forever without being tampered or manipulated. This would be a relief to understand that the donation is being used for the right cause than being used for unethical reasons, scams, or misused.

7. Cryptocurrencies are based on blockchain technology - a digital ledger meaning it records all its transactions. The donor will always be able to track the funds he/she has donated and see whether their funds are spent in line unless and until the crypto has been exchanged for fiat.

Andreas Antonopoulos, a Bitcoin expert and author of ‘The Internet of Money,’ said, 

“You’ve seen numerous scandals where charitable donations end up being used for operating costs,” “It’s very difficult to see where a donation is going, but this could change that.”
 

8. With the help of crypto donations and its underlying technology, donors will also learn the projects or deeds the charity is tagging the funds for donation at. This sort of cycle can help build a connection of trust and transparency between the donor and the organization.

9. Organizations can even hold onto cryptocurrencies if they are certain about crypto’s market value and trends. When strategically used, the asset will grow and have a better value, that can be used as an advantage by the charities.

10. The early adopters of donations with cryptocurrency are at a favorable stage as not everyone accepts crypto donation making the organization in having access to a more substantial part in the amount of wealth and exposure.

As reported by CryptoGivingTuesday, research shows that over 13,300 BTC and an equivalent amount of $200+ million in cryptocurrency were donated to charities.

Many nonprofits organizations accept donations in cryptocurrencies and are globally recognized, such as the Wikimedia Foundation, Human Rights Foundation, Save the Children, American Red Cross, and Greenpeace.  

With cryptocurrency donation, you can make your contribution to the welfare at across anywhere in the world and be assured that all your contribution is spent in line with the intentions you donated for. Donation with cryptocurrency is one of the wise methods to contribute, saying that it shows a promising outlook for donors as well as charitable organizations.