CRYPTOCURRENCY & PHILANTHROPY: A NEW WAVE IN CHARITABLE GIVING
January 26, 2022
Crypto is a rapidly-growing digital currency and is bringing with it a new wave of charitable giving. We’re proud to be part of this exciting, philanthropic practice and recognize its vast impact potential to help us achieve our mission.
Guided by the community, we work with them to not only address their immediate needs after a disaster strikes but look to the future at long-term recovery. Every step of the way, we listen and learn, helping communities rebuild in stronger, more resilient ways.
By giving today, your cryptocurrency donation can help shorten the gap between disaster and recovery and help communities fortify their resilience to potential future disasters.
WHAT IS CRYPTOCURRENCY?
Cryptocurrency or ‘crypto’ is a digital currency that can be used to buy goods and services. Cryptocurrencies work using a technology called blockchain. Blockchain is a decentralized technology spread across many computers that manage and records transactions. A huge appeal of this blockchain technology is its security.
Crypto is a secure, innovative currency that has been on the market for over a decade and continues to grow in value. Although Bitcoin could be seen as the most popular cryptocurrency, there are now thousands of virtual currencies with Bitcoin, Ethereum, Binance Coin and Tether being just a few of them.
WHY ARE CRYPTOCURRENCIES SO POPULAR?
Crypto is seen as a currency of the future, and one that is only going to gain value as time goes on. The rate of growth in the world of cryptocurrency is impressive. As of December 2021, the total number of crypto users worldwide is estimated to be over 300 million (Triple-A). Considering this number was just 200 million 6 months ago (crypto.com), the rate of growth is accelerating and is showing no signs of slowing down.
The popularity of crypto can be ascribed to many features. One of which is the security of the currency compared to traditional payment systems thanks to the technology behind it, blockchain. Additionally, many see a benefit in the fact that crypto removes central banks from managing the money supply. This makes the transfer of crypto easier as there is no third party or middleman. Furthermore, banks tend to reduce the value of money via inflation, over time, whereas there is not this risk with the decentralized model of crypto.
WHY DO NONPROFIT ORGANIZATIONS ACCEPT CRYPTO?
An exciting progression to the rise of crypto is crypto philanthropy. It is an easy and secure way for the rapidly growing crypto user base to support philanthropic causes.
It is important for nonprofits to diversify their funding to increase their impact. By accepting crypto donations, nonprofits have the opportunity to bring in more, vital funds to support their mission. Crypto philanthropy also allows nonprofits to widen their supporters, with 94% of crypto buyers reported to be between the ages of 18 and 40, the majority of whom are millennials (The Giving Block).
The world of crypto philanthropy may be relatively young, but it is already having a huge impact in the nonprofit sector and is rapidly growing. According to The Giving Block:
“Year on year, we have seen crypto donations continue to increase. Currently, about $300M is donated in the form of cryptocurrency each year. In the first half of 2021, The Giving Block’s donors and charities have more than doubled the entire previous year’s worth of cryptocurrency donations!”
WHY DONATE TO AHAH THROUGH CRYPTO?
Crypto Philanthropy is an exciting and promising fundraising avenue for All Hands and Hearts to drive more impact to communities after disasters. The value of many cryptocurrencies is rising and the crypto community is in a position to make a global and inclusive impact through this type of charitable donation. When you give, you want your contribution to be as effective as possible. Donating crypto directly to AHAH provides vital support to the communities we serve, who continue to face unique challenges posed by COVID-19 and increasingly frequent and intense disasters, and can save you money.
Donating through this avenue is one of the most tax-efficient ways to support your favorite cause. The Internal Revenue Service classifies crypto as capital assets, like stocks. This means you may be able to deduct the full market value of the cryptocurrency at the time of the donation against your ordinary income while potentially avoiding the capital gains tax altogether. Take a look at The Giving Block’s tips to learn more about how donating crypto can lower your taxes or talk to a tax professional.
Donating crypto to AHAH will go directly towards supporting families who have been displaced or have lost their homes completely as a result of a disaster. It will go towards ensuring students in high-poverty regions can return to safe schools and have access to clean water. Help your gift go as far as possible to build a brighter future for vulnerable communities affected by disasters and donate crypto today.
Help us spread the word by sharing our crypto donation page. Together, we can build a safer, more sustainable world.
* Please consult your tax advisor regarding your particular tax situation. Comments and information provided on this website are for informational purposes only and shall not be relied upon as official tax advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.
