Charities accepting bitcoin isn’t necessarily a new occurrence. Many have quietly taken these digital donations for years, but only in the devastating wake of COVID-19 are these organizations starting to really publicize the fact that they’re crypto-friendly.
Because of uncertainties in the market and a renewed need to transfer funds globally with next to no fees and lightning-fast distribution- many charitable organizations are turning directly toward crypto. Not only are they encouraging the exchange of digital currencies, but they’re also finding out that many of the available blockchain technologies could help iron out a number of functional issues that novel Coronavirus has brought into the spotlight. If you need help figuring out how to donate, buy, or sell cryptocurrencies, check out a new user-friendly exchange like Bitvavo. If you already have a pretty solid handle on how crypto works, read on to find out just what it is these charities are doing and why.
Blockchain and Crypto for Charity
Cryptocurrencies are beneficial to non-profits for more than just their monetary value. Because cryptocurrencies like bitcoin are borderless, global payment systems, the fees they incur during a transfer of funds processes are exceptionally low. When it comes to fiat, if you donate to any given charity in US Dollars, but that money needs to be exchanged into a Malagasy Ariary, things can get pretty expensive.
Not to mention it can take weeks for this type of fiat transaction to clear. This is because of the way banks work. It’s rare that any institution that works with US dollars would also have a stockpile of Madagascar based money. So what has to happen is that the US bank will liaise with an intermediary institution. One that works with both US dollars and Malagasy ariary. Sometimes there need to be multiple intermediaries that can exchange on fiat into another, to eventually be able to exchange it for the target fiat.
Each time intermediaries are used, transaction fees and exchange rates take a pretty big piece of that charitable pie. Leaving only a fraction of the original funding going to its intended purpose. With bitcoin and other cryptocurrencies, this doesn’t happen. As the crypto is only subject to transaction fees (on certain networks), that are generally very small. Not to mention that there exists now an entire blockchain technology token devoted to circumnavigating this financial institution game of telephone.
Other Blockchain Technologies
That crypto that’s designed to remove the multi-institutional mediaries from the global transactions equation? That’s actually Ripple (XRP), a popular altcoin. Apart from Ripple, there’s a number of other types of blockchain tech that charities can use to their advantage.
Perhaps the most promising feature of Charities using crypto technology is that it can easily promote trust and transparency with funding. The blockchain is a distributed public ledger, that anyone has access to- and by integrating this type of technology into their own accounting schemes, charities can show donors exactly where their money is going and how it’s being spent. Something that donors have longed to have access to.
Crypto can also give charities access to unusual types of donations. Any number of assets can be tokenized using cryptocurrency. This means that all sorts of things, not just money, can be donated. Things like copyright licenses, physical items, or even gift packages could be easily donated to charities without the organizations needing to physically possess these items.
Which Charities Accept Bitcoin?
There is a number of charities that accept bitcoin, so this list is far from exhaustive, but here are some of the most familiar organizations that are proudly accepting cryptocurrencies.
The Red Cross
The Red Cross helps to protect human life and health by promoting independent humanitarian efforts across the globe. Some of the core tasks of the organization include monitoring compliance to the Geneva Conventions, organizing nursing care treatment of wounded, search for missing persons, and to arbitrate between warring parties.
Aims to provide reliable water projects to communities in sub-Saharan Africa. They do this by improving access to water resources in part by building new wells, dams, and rainwater catchment systems.
Binance Charity Foundation
Hopes to achieve global sustainable development by utilizing blockchain technologies. Focusing on solutions to social problems and poverty. Helping to stamp out hunger, homelessness, environmental destruction, and healthcare issues by promoting infrastructure, economic growth,, and affordable, clean energy.
A large crypto exchange in Singapore has dedicated its time and money to help purchase protective equipment and donate to frontline medical staff.
Save the Children
Helping children to stay safe and healthy, while promoting learning in over 100 countries. Hoping to tackle common childhood illnesses like pneumonia and keep food on their plates.
United Way Worldwide
Focused on creating community-based, and community leads solutions to help strengthen the cornerstones for a good quality of life for all. Things like job training, building classrooms, and distributing mosquito netting are all ways the United Way helps communities across the globe.
Disclosure / Disclaimer : This article is sponsored by a third-party source and should not be viewed as an endorsement by Tokenhell Team.