With the increasing popularity of cryptocurrency, some of the world’s largest nonprofit organizations have started accepting donations in cryptocurrency, such as the Red Cross and the Rainforest Foundation. In this article, we will discuss the advantages of donating cryptocurrency to charity, the process of making a donation with crypto, which charities accept it, and important tax benefits to consider.
Advantages of donating crypto:
One of the main goals of the crypto industry is to create a more equitable financial world and help lift the unbanked out of poverty. Charitable organizations around the world have been receiving millions in crypto donations, aligning with the same spirit of giving.
When it comes to donating, crypto transactions result in lower processing fees for nonprofits compared to credit card donations. This means that more of your donation goes directly to the cause, rather than being eaten up by payment processing charges. Furthermore, cryptocurrency donations are tax deductible and exempt from capital gains taxes.
How to donate crypto:
You can donate your cryptocurrency to a nonprofit or charitable organization in one of three main ways:
1. Donate to organizations that use a crypto payment processor like BitPay:
– Choose your preferred cryptocurrency and the amount you wish to donate
– Fill out your donor information
– Tap the “Donate with BitPay” button
– A QR code invoice will be generated. Scan or input the wallet address into your crypto wallet to complete the transaction
2. Make a P2P crypto donation to the organization’s wallet
– Open your preferred crypto wallet
– Choose the wallet/cryptocurrency
– Click “Send”
– Enter the wallet address or scan the receiver’s QR code
– Enter the amount you want to donate
– Confirm payment details and send
3. Donate via donor-advised funds: Donor-advised funds through legacy financial service providers allow the donation of cryptocurrency, converting it to cash and then depositing the proceeds into the fund.
Nonprofits that accept crypto donations:
BitPay has partnered with several charities and nonprofits that accept direct crypto payments through the BitPay app, including the Albert Einstein College of Medicine, Amazon Watch, American Cancer Society, American Lung Association, American National Red Cross, Carnegie Mellon University, and many more.
When looking to contribute to a charitable organization, consider donating cryptocurrency as a way to support your favorite cause while taking advantage of tax benefits and supporting a more equitable financial world.