Monday, August 15, 2022

How To Accept Crypto Donations

Why Do People Donate Cryptocurrency Instead Of Cash

How to Accept Crypto Donations on YouTube (2021)

Cryptocurrency giving does not benefit just the receivers. It has upsides for the donors too. Here are a few reasons people opt for the virtual route when choosing a currency to donate.

  • Tax incentives are the first and most significant reasons why donors are moving towards cryptocurrency transactions. The IRS, according to its latest updates, considers cryptocurrency as a type of property. Giving to a 5013 nonprofit usually exempts the donor from capital gains tax on appreciated assets.
  • For holders of cryptocurrency, donating it to charities helps in widening its use and popularity. Nonprofit fundraising can have wide reach and publicity. And any financial technology thats used by nonprofits usually gets a lot of eyes. So, for existing holders, its a way of building their market too.
  • Crypto donations are also incredibly convenient and fast modes of transactions. All you have to do is click a few selections, and a widget takes care of everything. Its a few steps less than, say, donating with a credit card or cash.
  • Bitcoins price can often experience increases that can stay stable over time. Holders of such currency may donate entirely out of goodwill and generosity. You wouldnt want a benefactor to move on to some other charity just because you dont have a payment option.

How To Accept Cryptocurrency Donations

Are you feeling a tad bit hopeful about cryptocurrency now? If you happen to be interested and you are considering on accepting cryptos for your charity, the next question is quite predictable- how though?

Trust me, its pretty simple.

All you need to do to start getting cryptos is to create a wallet. The step-by-step process of opening a Bitcoin wallet is clearly illustrated in our article on how to gift Bitcoins.

After you open your wallet and get your public address, the next step involves sharing your address with your donors! You may do this by merely copy-pasting your address on your site or sharing the QR code for a more straightforward method of donations by your contributors.

Also, you should consider using the blockchain.infotag function as it will help your organization verify that it is the owner of the address.

Warning:

This may be the easiest, fastest and most straightforward method of accepting donations but dont forget to take your safety into account. Cryptos have value, and like anything valuable, they should be adequately secured.

The first thing you need to consider if you are planning to share your public address or QR code on your blog is investing into HTTPS. This will protect you from what is known as man-in-the-middle attack that hackers can exploit on HTTP to change your address to theirs and steal all your upcoming donations without your notice.

You should also consider using paper or hard wallets to secure your finds.

How To Accept Bitcoin And Other Cryptocurrencies

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Crypto Fundraising Is Here For Good

Nonprofits looking to accept cryptocurrency as a new revenue source are in great company. Major global and national players in the charitable sector, including Save the Children, Direct Relief, American Cancer Society, World Vision, No Kid Hungry and United Way, have established crypto and bitcoin donations as a key part of their long-term fundraising strategy. The move toward crypto adoption among nonprofits comes at a pivotal time in philanthropy.

Several areas of traditional fundraising seem to be trending in a concerning direction. Giving USAs Annual Report on Philanthropy for the Year 2020 found that corporate giving, which includes cash, in-kind contributions, grants, and gifts made by corporate foundations, has declined by an estimated 6% in 2020, totaling about $16.8B. Meanwhile, organizations focused on health and arts, culture, and humanities have faced overall losses in contributions in the last year. Across the board, hardships caused by the COVID-19 pandemic also posed numerous fundraising challenges, with in-person events such as walks and charity galas made impossible and many nonprofits seeing their reliable donors giving less in 2020.

Though were yet to fully grasp the ripple effects of COVID-19 in the world of philanthropy, many worried fundraisers are finding hope in accepting cryptocurrency donations, noting its emergence as a force for funding social good.

Give Directly To Those In Need

How to Accept Crypto Donations on Twitch.tv

Working with marginalized communities can often require cash to trade hands multiple times before getting to the desired beneficiaries.

Lets say a donor made a $100,000 donation to support a school program in rural Uganda. That money would have to be transferred to Uganda, converted into Ugandan Shillings, withdrawn from a bank, and transported to the rural area.

All of the fees associated with this long process would diminish the value of the original contribution and take money out of the school program. However, with cryptocurrency, this process can be avoided.

Anne Connelly, an advocate for the social potential of blockchain, contends that crypto, like Bitcoin, can overcome the inefficiencies of humanitarian work. More, Anne argued that Bitcoin could be a valuable currency for those living in the global south that have seen their currencies inflate to the point where they are no longer functional.

Bitcoin can overcome governmental mismanagement of currency and provide those in marginalized communities worldwide with economic power.

For donors, giving Bitcoin also allows them to see exactly how their money is spent, as every transaction is public and protected by blockchain technology.

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The Giving Blocks Beneficiaries

Other charities that The Giving Block has supported in accepting crypto donations include Save the Children, No Kid Hungry, United Way as well as the American Cancer Society. According to the company, its client base has grown from 30 to more than 250 in the past year alone.

Wilson noted that the crypto wealthy can receive a tax deduction for their donations to nonprofits or churches. When cashing out on crypto investments, he said this could reduce taxes of up to 37%. Wilson added that many of the donors using his services are millennials or Gen Z .

What do you think about this subject? !

Open An Account With A Cryptocurrency Platform

To accept crypto, youll need to set up a crypto wallet or an account with a crypto payment processor. The most popular payment processors are BitPay and Coinbase. These platforms allow you to accept crypto donations and then automatically convert the crypto into US currency.

While some nonprofits prefer to hold onto crypto , most choose to cash it out right away. If you dont, you risk the value of the gift going lower or even to zero. Crypto values can fluctuate wildly even within a single day, so cashing them out immediately is less risky. It will also help you avoid any accounting discrepancies in the donated value and the actual cash proceeds.

If you open a crypto wallet instead of going through a payment processor that automatically converts into cash, you may want to monitor the wallet daily so that you can sell the tokens or coins immediately.

You can also direct your donors to Crypto for Charity, a new tool that accepts gifts of crypto and liquidates it immediately into cash for your nonprofit.

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Is Cryptocurrency Here To Stay

Well, there is still debate in certain circles on the relevance of cryptocurrency and if it is here to stay. At this point, it is hard to argue that it wont be around for a long time, if not forever.

It provides a safe, secure, and oftentimes anonymous way to send and receive money. Furthermore, it gives you the ability to access other parts of the world and make easy payments and donations. There is no need to convert from one currency to another .

So, my opinion is that it is here to stay and that it is definitely a good idea to use a plugin like Cryptocurrency Donation Box to give site users the ability to donate to your organization or cause using different cryptocurrencies.

Crypto Can Have Tax Advantages

How to Accept Crypto Donations on Twitch (2021)

Lets say you bought $2,000 in bitcoin over a year ago. As of April 2021, the fair market value is now $5,500. You decide to donate the full amount to your favorite IRS-recognized charitable organization. Here are two ways your contribution could play out:

Sell bitcoin and donate in dollars: If you were to sell the bitcoin first and then donate dollars, you might incur a long-term capital gains tax of up to 20 percent which would be around $700.

Final donation given: Approximately $4,800.

Donate bitcoin directly: If you were to donate the bitcoin directly, your tax-deductible contribution could go much further. With a direct donation, you might not have to pay capital gains tax on the bitcoin.

Final donation received: Approximately $5,500.

Read Also: Where Can I Pay With Crypto

How To Accept Bitcoin Payments With Bitcoinpay

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Which Nonprofits Accept Crypto

Whether youre looking to support initiatives around clean water, early-childhood education, or human rights, dozens of organizations are already set up to accept donations today in crypto. Here are a range of popular options:

Electronic Freedom Foundation: Founded in 1990, EFF champions user privacy, free expression, and innovation through impact litigation, policy analysis, grassroots activism, and technology development. We work to ensure that rights and freedoms are enhanced and protected as our use of technology grows. Accepts: Bitcoin, Bitcoin Cash, and Ethereum.

Freedom of the Press Foundation: The organization works to preserve and strengthen First and Fourth Amendment rights guaranteed to the press through a variety of avenues, including the development of encryption tools, documentation of attacks on the press, training newsrooms on digital security practices, and advocating for the publics right to know. Accepts: Bitcoin, Bitcoin Cash, Ethereum, Litecoin, and ZCash.

GiveCrypto.org: In 2018, Coinbase co-founder Brian Armstrong founded GiveCrypto, a nonprofit that distributes cryptocurrency to people living in poverty. GiveCrypto has distributed over $300k of cryptocurrency to over 5,000 people in 13 different countries. Accepts: Bitcoin, Bitcoin Cash, Ethereum, Litecoin, and USDC via Coinbase Commerce.

Looking for more options? The Giving Block also maintains an extensive and updated list of charities that accept crypto.

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View The Cryptocurrency Donation Box On Website

Once the shortcode has been added where you want, take a look to see what the box looks like.

I went ahead and added a few wallet addresses for this demo so you can see how it looks. You see that I added Bitcoin, Ethereum, and XRP. Anyone donating can simply click through to the preferred crypto and donate straight to your wallet address.

Users can also use the available QR Code to do the same thing.

Thats it! You are up and running and from this point on have the ability to take cryptocurrency donations right on your WordPress website.

How To Donate Cryptocurrency To Charity

How to Accept Cryptocurrency Donations: Promoting Coin ...

At the 2021 Collaborative, Edwin Goutier, The United Ways Vice President of Innovation, explained why his organization was one of the first nonprofits to begin pursuing cryptocurrency donations.

is completely aligned with our mission. We saw the growth of that market and the potential for our community to have their wealth do something positive. Its been a wild ride.

The United Way

More and more donation platforms are allowing nonprofit organizations to accept cryptocurrency, which is good news for individual donors looking to give back. The Giving Block is just one of the most prominent examples. Even some larger financial institutions, like Fidelity Bank, are getting on board.

To ensure that your donation is being used effectively, take advantage of transparency resources like GiveWell or Charity Navigator. Strong stewardship is important regardless of how you donate your assets to nonprofits.

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Why Donate Bitcoin Ethereum Nfts And Other Cryptocurrencies To Charity This Holiday

Save the Children believes in one simple principle and that is that all children have rights: the right to be healthy, educated and protected. We also believe that crypto can be a force for good. If you share our belief, join our global movement to HODL hope for children. By giving today, your cryptocurrency donation can make meaningful change for children, families and their communities across the world this holiday season.

Save the Children was the worlds first INGO to accept a bitcoin donation in 2013: in response to Typhoon Haiyan that struck Southeast Asia and devastated the Philippines.

*Subject to change

Donating Bitcoin To Charity

How donating bitcoin and other cryptocurrencies directly to charity increases the size of your gift

Before you sell bitcoin and donate the after-tax proceeds, consider donating your bitcoin directly to charity. This model includes two significant benefits, both for you and the charity:

  • Your tax deduction will be equal to the fair market value of the donated bitcoin .
  • Your gift to charity will be larger because instead of paying capital gains taxes, the 501 charity will receive the full value of your contribution.

Theres another upside to donating bitcoin to a public charity with a donor-advised fund program such as Fidelity Charitable: the opportunity to recommend how the contribution is invested and potentially grow it tax-free, ultimately providing greater charitable/philanthropic support.

Did you know?

Fidelity Charitable accepts Bitcoin, Bitcoin Cash, Ethereum and Litecoin.

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Where Can I Learn More About Crypto

Anne told us that the best place to learn more about blockchain and crypto is the same place we go to watch silly cat videos, look up recipes, and buy last-minute birthday presents: the internet!

Based on this advice, I have compiled some excellent internet resources to answer nonprofit professionals questions.

Is It Hard To Accept Cryptocurrency Donations

How to Accept Bitcoin Donations on Wix (Free 2021)

No, it isnt. Most nonprofits can begin accepting donations via cryptocurrency with some simple additions to their fundraising process.

Granted, cryptocurrency can be slightly overwhelming at first. Its especially true if you intend to hold, trade, and perform transactions yourself. Besides Bitcoin, other digital currencies like Ethereum, XRP, Tether, and Litecoin are continually growing.

Nonprofit fundraising is hard enough as it is. And you dont need to add skill-requirements to an already challenging job. However, there is good news for charities who want to get into nonprofit cryptocurrency. You dont have to be a cryptocurrency expert to accept donations. All you have to do is pick the payment platform that suits your organization, and youre good to go. So, youre handing over the technical aspects to professional platforms. Its a process thats both intuitive and easy to understand.

There is a range of cryptocurrency options, so its important to determine which you will accept and understand how the process of conversion to cash works.

So, how do you start a cryptocurrency payment feature for your nonprofit? Weve put together a guide-of-sorts below thatll take you through every step.

Also Check: How To Get Bitcoin Cash For Free

How To Accept Cryptocurrency From A Donation Box In WordPress

    Cryptocurrency has become a wildly popular way to pay and get paid over the last few years. At this point, it seems as though it is here to stay. So, why not leverage it by offering people a way to donate using a cryptocurrency donation box?

    Cryptocurrencies are everywhere. Many eCommerce websites also allow you to use crypto to pay for goods and services on their checkout page.

    Today, I am going to show you exactly how you take bitcoin donations and other major cryptocurrency donations right on your website. You could code this in, but there are much cleaner and smoother ways to accomplish it.

    Crypto Gifts Can Help You Get Bigger Gifts From The Same Donors

    When donating to nonprofits, the IRS treats cryptocurrencies like property, so donors avoid capital gains tax and can receive income tax deductions. Well go more into capital gains later in this article, but the simple definition is that a capital gain is the difference between the original purchase price of an asset and its current value.

    This means it costs the same donors less to make a gift of cryptocurrency than it would to sell their crypto and give in cash. Gifts of appreciated assets like stock and crypto tend to be larger than the average cash donation because donors pass on the tax savings.

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