Donating and Fundraising with Charity Cryptocurrency

Donating and Fundraising with Charity Cryptocurrency

From Alan Steve

According to recent statistics, 45% of crypto owners donate $1k and more to charity every year

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According to recent statistics, 45% of crypto owners donate $1k and more to charity every year. The average size of a charity blockchain donation is about $11k, which is 100 times bigger than that of a fiat donation. The scope and scale of crypto philanthropy are projected to grow in the nearest future. The trend will evolve as more people will learn about the blockchain charity option and more non profit organizations will engage in cryptocurrency fundraising. In this article, we will try to deal with what makes crypto charity so popular both among donors and fundraisers.

What Is Crypto Philanthropy? Non Profit Cryptocurrency Explained

When you hear the word “crypto” you probably think of NFT, BTC games, or Metaverse. But have you ever heard about crypto charities? As follows from its name, crypto charity, or crypto philanthropy, as it is sometimes called, means performing a donation to a non profit organization in the form of virtual currency. This includes crypto donations in Bitcoin, Ethereum, Litecoin, and others. Besides the direct cryptocurrency donations, crypto philanthropy encompasses charity through



     Coins and charity tokens.

Cryptocurrency donation requires both a donor and an organization that accepts the gift. Thus, to enjoy the advantages of charity cryptocurrency, a non profit organization needs to include cryptocurrency donations in its fundraising strategy. They need to set up a crypto wallet and add the crypto donations form to their fundraising platform.

A lot of nonprofit players have already done so and joined the crypto philanthropy movement. These are such huge organizations as Save the Children, World Vision, United Way, and No Kid Hungry, to name but a few. But what makes crypto charities so attractive? Let us discuss in more detail the advantages blockchain charity implies to both donors and non profit organizations.

Benefits Of Crypto Donations: What’s So Good About Charity Crypto?

Now, why have people started cryptocurrency donations instead of using the good old-fashioned cash? The key reason for this is that crypto donations are simply more beneficial to a donor and here is why.

Security, speed, and transparency

When you decide to donate to a nonprofit organization, it is particularly important to you that the money reaches the addressee as soon as possible. You want to be notified of all stages of the payment processing and get frustrated when there is a delay or ambiguity. The key strength of charity blockchain is that a cryptocurrency donation is 100% transparent: you can trace the transaction all throughout its way. This makes working with charity crypto not only convenient but secure, too. More than that, cryptocurrency donations are super fast which is another bonus as opposed to fiat money gifts.


As a donor, you want your gift to be as beneficial to the chosen nonprofit organization as possible. That is, you want it to receive all the money you send. Unfortunately, this is impossible when you deal with classic cash donations because of transaction fees and taxes. Instead of getting the whole sum of your gift, the target organization only gets part of it. The rest goes to bankers and the government. The situation is totally different when you use charity cryptocurrency though. Thus, one of the best things about a cryptocurrency donation is that it is free (or almost free) and not taxed. We will discuss the details related to taxes and non profit cryptocurrency later in the article.

Anonymity and image

Another benefit of blockchain charity is that it appeals to different types of donors. Thus, one possible explanation for why many crypto owners have started cryptocurrency donations is that this donating format corresponds to their worldview. On the one hand, cryptocurrency donations are 100% anonymous, which is an excellent fit for those who prefer their philanthropy to stay private. On the other hand, the use of crypto, including charity crypto, is associated with something cool and progressive which might appeal to those who want to be in the trend.

More On Tax Considerations In Crypto Charity: An Illustrative Case

Such benefits of donation cryptocurrency as anonymity and security need no commentary which cannot be said about the cost-effectiveness benefit. Indeed, how exactly charity blockchain helps to save money for both donors and recipients? To illustrate this, let us consider an imaginary case where Mr. X wants to donate 20 BTC to a nonprofit organization. He purchased these bitcoins 5 years ago at $10k in total. Today, they are worth $500k. Mr. X wants to donate the whole sum to charity and there are two main options he can choose from. Option 1 is to sell the bitcoins and make a donation in cash. Option 2 is to use non profit cryptocurrency.

The calculations presented in the table are not intended to provide a flawlessly accurate account of how the donation reduces due to taxes and transaction fees. To learn this, you would need to consult a lawyer and get more details on the nonprofit organization as well as the payment system or the cryptocurrency used. For example, some organizations qualify under 501(c)(3) and offer their donors tax deductions, while others don’t. What this case shows, instead, is the obvious financial benefits of charity blockchain: cryptocurrency donations are untaxed and the processing fees are real low or even free.

Benefits of Crypto Fundraising: Why Is It Good To Get Crypto Donations?

By this point, we have said a lot about the benefits of charity cryptocurrency to donors, but what about the recipients? Of course, one of the core benefits, which they share with the donors is the exemption from taxes and low (or no) transaction fees. In the meantime, this is not the only advantage of crypto fundraising.

The big promise of non profit cryptocurrency

One reason for a nonprofit organization to go for blockchain charity is that an average cryptocurrency donation is 100 times bigger than a traditional cash donation. This means that adding charity crypto to your fundraising profile can help to draw substantially more funds to the organization. Given that the global crypto market is projected to grow by 12% in the next 10 years, it is not ungrounded to claim that the scope and scale of crypto charity will only keep increasing.

Crypto fundraising is easy

One concern that might deter nonprofit organizations from getting involved in crypto philanthropy is that they have a poor idea of how to get cryptocurrency donations. Feeling not savvy enough in charity cryptocurrency, some great organizations prefer to stick with the traditional fundraising format. In practice, however, non profit cryptocurrency is not as complicated as it might appear. In effect, there are, at least, three simple ways for a nonprofit organization to start crypto fundraising:

     through a donor advised fund that already works in the cryptocurrency donation format;

     through a trusted crypto donation platform;

     directly through a crypto wallet.

Crypto charity is a way out for organizations that cannot get traditional donations

Many activists and philanthropists started cryptocurrency donations not because of their financial benefits and effectiveness but rather because this is the only way they can donate to their non profit organization. Due to many reasons, a non profit organization can be subject to a banking blockage meaning that it cannot receive funds using its banking account or traditional payment systems. The most illustrative case, in this regard, is that of WikiLeaks which was literally saved by crypto charities after the US government blocked its banking in 2010.

Wrapping Up: Key Takeaways About Crypto Charities

So here is a brief account of what you need to know about crypto philanthropy in 2022:

     There are more donors among crypto users than among those who use fiat money;

     The size of an average cryptocurrency donation is substantially larger than that of a traditional one;

     The size of the crypto market is projected to grow by 12% by 2030 and so the scope and scale of crypto philanthropy will likewise increase;

     Charity blockchain implies numerous benefits to donors including fast and secure transactions, reduced costs, as well as anonymity or, on the contrary, prestige;

     Crypto fundraising is equally beneficial to non profit organizations as it is easy to manage and potentially more promising than traditional fundraising. Besides, it is a way out for organizations that are, for some reason, subject to a banking blockade.


Yes, crypto charities are as legit as traditional donations in cash. You can lawfully donate crypto to any non profit organization that accepts it.

Can my organization manage crypto donations without outside help?

Yes, managing charity crypto directly through your crypto wallet is one of the basic options available to you once you started the cryptocurrency donations campaign. If you feel you need additional help and expertise on crypto fundraising, you can hire an external consultant or turn to a crypto donation platform.

What is a crypto donation platform?

A crypto donation platform is a company that provides crypto fundraising solutions to nonprofit organizations to help them accept donations in BTC and other cryptocurrencies. Such platforms likewise offer assistance to donors by consulting them on taxes and other details related to crypto donations.

Can I use USDC as the charity cryptocurrency?

Sure, in effect USDC is the third most popular digital currency used for crypto philanthropy. The first and the second ones are Ethereum and Bitcoin.

Do many non profit organizations allow crypto fundraising?

The list of non profit organizations involved in cryptocurrency fundraising is fairly extensive already. There are over a hundred organizations that accept digital currency gifts today and there are more to come.

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