Ten reasons you should donate cryptocurrency this #CryptoGivingTuesday
Over the past week, you’ve probably noticed a massive increase in social media posts related to charitable donations. One thing, however, that is a bit different this year, is the number of them focusing on cryptocurrency donations.
The momentum in the crypto-giving space is unstoppable, as more charities sign up each day to accept cryptocurrency donations, and more donors make charitable contributions with cryptocurrency. For many non-profit organizations, crypto giving is an essential part of their fundraising strategies and has played an extraordinary role in helping them deliver on their missions.
So, today, I want to highlight ten reasons why you should donate cryptocurrency this #CryptoGivingTuesday.
1. Crypto giving is highly cost effective
Accepting cryptocurrency donations has the potential to save non-profits a lot of money that would have otherwise gone to middlemen organizations such as fiat charitable giving platforms and credit card companies.
In my blog post “Accepting crypto donations in the charitable sector,” I highlighted the exorbitant fees some donation platforms charge to charities. Global Giving, for example, charges 8-15% in fees, while GoFundMe charges 2.9% plus 30 cents per transaction.
Many charities elect to accept donations directly through their website via credit card, but this doesn’t prevent them from paying fees. In fact, typical credit card fees range from 1.3% - 3.5%, and this doesn’t account for the additional cut that goes to the payment processor.
While these fees may seem like a drop in the bucket, they add up over time and can end up costing charities a substantial amount in lost revenue. Ultimately, these fees mean less of your donation goes to the charity, reducing the impact of your donation.
Cryptocurrency transactions, on the other hand, are typically extremely low cost, and cut out the need for a middleman to facilitate the transaction. This would ensure that less of your donation goes to large, often publicly traded corporations, and more goes directly to the charity.
2. There is no shortage of choices when it comes to donating your cryptocurrency
Gone are the days when you had just a handful or organizations to choose from when looking to donate cryptocurrency. The Giving Block, one of the largest crypto giving platforms, alone supports over 1000 non-profits, universities, and faith-based organizations. This doesn’t include those that accept cryptocurrency donations through another platform or directly. Whether you want your contribution to address homelessness, hunger, gender inclusion, the environment, animal rights, or anything in-between, there is no shortage of options.
3. Making a donation by cryptocurrency is a vote for a more transparent giving system
"If you're a public charity why not make all your accounting - at least the #Bitcoin side of it - completely public so that people don't have to trust you. They can just look at the #blockchain" - Michael Tozoni, Treasurer of Bitcoin100, From Bitcoin and the Future of Fundraising
Most cryptocurrencies, by their very nature, are highly transparent, and thus, easily auditable. This makes it much easier for donors to see how much crypto is going into the charity, which can help hold the charity accountable. If donors see a significant amount of funds going to a charity, they expect to see results, and it helps ensure the charity puts the money to good use on meaningful projects.
4. By donating by crypto, you are supporting non-profits who embraced innovation
Despite the growing number of non-profits accepting cryptocurrency donations, it’s still a drop in the bucket when looking at the sector as a whole, as the vast majority of non-profits still don’t accept crypto donations. Many see it as inaccessible, don’t understand it, or are worried about the stigmas associated with crypto such as it being “the currency of criminals.” As such, many non-profits will opt to steer clear of crypto for the foreseeable future, despite these stigmas being easily disputable. By donating to those who accept crypto, you are rewarding them for embracing innovation, and for making a decision that, for many non-profits, was a difficult one.
5. It will help send a message that crypto giving is here to stay!
By donating with cryptocurrency, you are sending a message to the world that cryptocurrency, and more specifically, crypto giving, is here to stay. It also sends a message to other non-profits that now is the time to get on board with accepting crypto donations.
6. It will help lead to a more decentralized world, free from unnecessary intermediaries
As highlighted above, fiat fundraising platforms or financial institutions that act as an intermediary often take a large cut of each donation, which pads the pockets of shareholders and corporate executives, instead of going to the non-profit to support their important mission. By donating with cryptocurrency, you are taking power away from these very powerful intermediaries and putting in back in the hands of the people, and of non-profits in need of the funds to support their vital missions.
7. There are a variety of ways to give
Nowadays, there are so many ways that one can donate cryptocurrency. As highlighted above, there is no shortage of non-profits accepting cryptocurrency, and there is also no shortage of ways that one can give cryptocurrency. This includes crypto giving platforms such as The Giving Block, BitGive, Binance Charity, and more. There are also many non-profits that accept cryptocurrency donations directly. Furthermore, you are typically not limited to just one or a few cryptocurrencies, and many charities, especially those listed through organizations such as The Giving Block, will accept dozens of different crypto assets.
8. It’s super easy to donate cryptocurrency
Whether through a crypto giving platform, such as The Giving Block or through Binance Charity, or by donating directly to a charity by scanning the QR code with their public address, crypto giving has never been easier and more accessible for those who aren’t as experienced with blockchain or making cryptocurrency transactions.
9. It shines a light on the positive in the crypto space
Whether we want to believe it or not, there are still many stigmas associated with the cryptocurrency space. Many wrongfully view cryptocurrency as “the currency of criminals,” a “Ponzi scheme,” an “environmental catastrophe,” or a fringe asset only used by a “shadowy group of super coders”. By making a donation with cryptocurrency, it shows these individuals not only that they are wrong, but that there is plenty of good being done in the space.
10. Your donation can make an impact on the lives of those in need
Finally, and most importantly, your cryptocurrency donation can have a real and tangible impact on the world and the lives of those in need. Binance Charity, for example, has impacted more than 1,000,000 beneficiaries through their giving program, while the Giving Block has raised millions of dollars in cryptocurrency donations for a variety of important causes. By donating cryptocurrency, you can provide food for a family in need, help advance LGBTQ2S+ rights, support someone experience homelessness, help facilitate the rescue of a loving dog, and support hundreds of other vital causes.
This #CryptoGivingTuesday will be one to remember, and I am confident that it will break all previous crypto giving records, while showing the world that the crypto community cares, and that crypto giving is here to say. So, we hope that you will make a crypto contribution today and support a cause important to you.
What are some other reasons one should donate cryptocurrency? Tweet us at @Crypto_Altruism to let us know what you think, we’d love to hear from you!
