Crypto philanthropy is yet another growing use case of cryptocurrency. Surpassing expert’s predictions, thousands of nonprofit organizations are now accepting donations in cryptocurrencies from across the globe.
Cryptocurrency allows for global, secure, and, most importantly, transparent transactions, all of which contribute to the efficiency and reliability of donations. The transparency feature ensures that transactions are visible on the blockchain, preventing fraud and ensuring funds reach their intended destination.
Let’s take a closer look at cryptocurrency donations, discussing their benefits and how to use them. By the way, if you’re new to cryptocurrency donations, check out ptpshopy’s guide to get started.
What is Crypto Philanthropy?
Crypto philanthropy involves donating Bitcoin and other cryptocurrencies to nonprofit organizations for personal or financial reasons. Blockchain technology has allowed for the versatile use of cryptocurrencies for different causes as well as encouraged global inclusivity. Overall, crypto philanthropy is a fast-paced trend among crypto enthusiasts as it allows them to support different philanthropic projects, regardless of their location.
A Brief History of Nonprofit Crypto Adoption
The introduction and adoption of Bitcoin into society in 2009 served as the basic foundation for crypto philanthropy. As users discovered the immense abilities of the blockchain, different financial solutions were built to solve or improve the preexisting ones, expanding the usability of cryptocurrency. The first case of crypto philanthropy goes as far back as 2013, an era when decentralized philanthropy was an alien concept.
The Save the Children charity started accepting Bitcoin donations to fund underprivileged children suffering from abuse, violence, and neglect. Another notable case of crypto philanthropy was the nonprofit crypto donation to the Wikimedia Foundation in 2014. The institution behind this charity project was one of the few to embrace and recognize Bitcoin as an alternative form of payment.
In 2017, the Pineapple Fund charitable initiative, launched by an anonymous donor under the name PINE, shared Bitcoin worth over $50 million with different charity organizations. Today, more than 10% of the top charity organizations accept cryptocurrency and more are open to including crypto donations in their organization.
Benefits of Crypto Donation
Crypto donations offer numerous benefits to the charity organization and the donor as well. In certain countries, especially in the United States of America, verifiable donors enjoy additional financial benefits. The following are some of the benefits of Crypto donation:
Crypto donations bridge geographical constraints
Perhaps you are looking to contribute to a cause in another control, crypto donation simplifies this task by facilitating rapid cross-border payment. With Crypto, you no longer have to bother about traditional bank restrictions or regulations as you can easily donate from the comfort of your home.
Diversifies the Charity Income
Charitable organizations looking to reach out to possible donors in other countries can now do so with ease. With crypto and a secure wallet address or crypto payment gateway, anybody can donate to your cause, increasing your revenue.
Secured Donations
Philanthropic initiatives can easily hold donated resources without worrying about theft and hacks. The blockchain ensures security such as seed phrase or 2FA authentication, protecting your coins from theft and hacks.
Easy and Accessible Donation Record
The blockchain is a digital ledger that records every successful transaction. Recorded financial data on the blockchain is irreversible and immutable, plus, it is also accessible to everyone. Charitable organizations can ensure accountability as every donation is securely recorded on the blockchain for everyone to see.
Additional financial benefits for donors
As countries all over the world adopt crypto taxation, crypto enthusiasts are now looking for ways to reduce their taxes. In the United States, tax incentives and benefits are given to crypto donors with a verifiable donation history. Crypto donors are motivated to donate more to enjoy crypto tax benefits from the U.S. Internal Revenue Service (IRS).
Charities Organizations That Accept Crypto
There are over 100 nonprofit charities in the United States that accept crypto donations. Common charities to donate to include
- Feeding America
- United Way Worldwide
- Habitat for Humanity International
- Salvation Army
- Good 360
- St. Jude Children’s Research Hospital
- United Way Worldwide
- Samaritan’s Purse
- Compassion International
- American National Red Cross
How to Get Started With Crypto Fundraising in 2024 using PTPShopy
For charity organizations interested in accepting cryptocurrency, crypto donation does not require prior knowledge or experience in crypto and blockchain. Most organizations do not have any knowledge of crypto as there are advanced solutions that simplify this process.
PTPShopy is a crypto payment gateway that facilitates payment between merchants and charitable organizations with customers and crypto donors. It employs blockchain technology to develop a financial solution that solves major crypto payment scenarios ranging from e-commerce payment, PoS payment for brick-and-mortar stores, and crypto donation.
To set your charity’s donation gateway, PTPShopy has simplified the process as all you need is to follow these procedures:
- Visit the PTPShopy Crypto Donation Page
- Sing Up/Register your charity or nonprofit organization. Provide the necessary information and proceed to the next step.
- Create your special donation widget. This widget is an API key, which comes as a short code snippet that you can paste on your website’s backend to start accepting crypto donations directly into the designated wallet.
- A donation button is a tool (another code snippet) that you can include in the charity’s website, blog, or any social media platform. Upon clicking or interacting with the button, donors will be directed to the donation widget to donate in any cryptocurrency of their choice.
- PTPShopy provides additional cryptocurrency donation links you can share on social media to attract more audience or traffic to that cause.
PTPShopy accepts 400+ cryptocurrencies, allowing prospective donors to donate to causes using cryptocurrencies of their choice.
For donors, PTPShopy sends a donation invoice that you can present to the OTA while filing your tax to enjoy tax deductibles. Charity organizations can set up their donation without paying any setup or monthly fees. PTPShopy also offers customized crypto donation solutions to organizations looking for something unique and personalized.