Benefits of Donating Cryptocurrency to Charity
Cryptocurrency has found its way into many areas of daily life. What was once viewed suspiciously by many has become its own decentralized economy. If you own digital coinage, every day seems to offer something new that crypto can accomplish. Many people have realized this after seeing just a few of the benefits of donating cryptocurrency to charity.
That’s right: Crypto has found its way into charitable giving. In fact, one anonymous giver donated $10 million in Bitcoin to a faith-based organization in 2021. This isn’t just a random outlier; people are increasingly giving with crypto. The ability to donate crypto is obviously good news for donation recipients, but what about those who are doing the donating?
Fortunately, there are several benefits of donating cryptocurrency to charity, churches, and nonprofits.
It’s Quick and Simple
Donors love when organizations make donating easy. This ease is a primary driver behind the massive growth in online donation software in recent years. Anything that makes life simpler for donors is good for everyone involved. Fortunately, this is one of the primary benefits of donating cryptocurrency to charity. In fact, it may be the easiest way of giving you’ll ever come across.
Just think of the hurdles you often encounter when giving. Donating cash typically requires a physical visit. Sending in a check involves a trip to the post office. Even online donations require you to grab your wallet, enter your information, and often go through security checks. When donating crypto, it’s as simple as copying and pasting an eWallet address.
Tax Savings on Donations
Simplicity sometimes isn’t enough to base a decision on. Fortunately, tax savings are another of the great benefits of donating cryptocurrency to charity. Yes, donations to churches and nonprofits are tax-deductible. Unfortunately, this doesn’t mean you won’t pay taxes on contributions. Envision a scenario where you have a stock investment that just paid off big.
Of course, you may now have it in mind to pass on your good luck to others. To do this, you’ll need to sell some of your shares to get cash for donating. In doing so, however, you’ll encounter capital gains taxes. For most people who earn over $40,400, this equates to a 15% tax rate. That means selling your stocks at a profit of $1,000 will result in a tax payment of $150.
Avoiding this is one of the biggest benefits of donating cryptocurrency to charity. Rather than selling an investment prior to giving, you can donate crypto directly to your desired organization. This creates no capital gains taxes, so you can give even more. Additionally, avoiding the headache of extra tax work every year is a major advantage.
Donating Crypto to Churches and Nonprofits Is Safe
Combining simplicity with major tax benefits is a big draw for anyone thinking of donating crypto. Of course, you should always consider safety and security when making a contribution. Could donating digital currency really be as safe as using a check or credit card? In some situations, it may potentially be safer.
This is because cryptography secures all blockchain transactions. In easier-to-understand terms, there’s a private and unique key contained in each block of a chain. This allows even anonymous donations to remain completely secure. Such security features are why many refer to crypto as the most secure currency on the internet.
The benefits of donating cryptocurrency to charity are many, but they would be inconsequential without safety. As long as you take common-sense precautions, though, this isn’t something you have to worry about. Just make sure to use established vendors like BitDonate to make all your crypto donations.
Giving Crypto Creates Transparency
If you ask most people why they don’t donate more, they’ll often cite a lack of transparency. Recent years have seen major reductions in organizational trust. This is a serious problem for churches, nonprofits, and charities — but what if you knew exactly where your money was going? Fortunately, transparency is another of the benefits of donating cryptocurrency to charity.
First off, donation recipients should already be transparent about where your money is going. If you’re a nonprofit or ministry leader reading this, you need to take that reality to heart. For anyone who gives to these organizations, though, the blockchain public ledger offers even more confidence that their donation is getting put to good use.
Transparency is one of the biggest draws of digital coinage. That’s why it makes sense that this is also one of the biggest benefits of donating cryptocurrency to charity.
Beat Market Downturns
Crypto donations certainly seem like a good idea on paper, but what about market fluctuations? For instance, if you donated one Bitcoin in February 2020, its value would have dropped from around $10,000 to less than $4,000 in just a single month. Wouldn’t it be better to simply sell the digital coin to ensure the church or charity gets what you want them to have?
Fortunately, immediate conversions are another of the many benefits of donating cryptocurrency to charity. For instance, a crypto donation on BitDonate immediately gets sold at current market value. This means the recipient receives real money in the expected value. And since the sale is handled by BitDonate, you don’t have to worry about encountering capital gains taxes.
Of course, this can vary between vendors. Not all crypto donation platforms work this way, so make sure you do your research before giving. You don’t want your contribution losing value due to transfers or sales not quickly going through.
Converting Crypto Dust Into Goodwill
How many times have you sold crypto or converted to other currencies only to have leftover coin fractions? This is known as crypto dust, and just about everyone has some in their eWallets. Some platforms will let you roll this over into other digital coins, but why bother when you can donate this dust directly to your favorite church or nonprofit?
Taking advantage of these fractions can be another of the biggest benefits of donating cryptocurrency to charity — both for donors and recipients. While these may not seem like much to you, they can really start to add up for organizations. You’re also getting the chance to help out your favorite causes with minimal effort, so it’s a win-win for everyone involved.
Get All the Benefits of Donating Cryptocurrency to Charity
Cryptocurrency seemed like a fad just a few years ago. With widening acceptance as a valid monetary system, though, digital coinage has increasingly found its way into our lives. Whether it’s paying for coffee or tithing to your church, crypto can do just about everything. Fortunately for givers, the benefits of donating cryptocurrency extend beyond the donation recipient.
If you’re looking to donate crypto to churches, nonprofits, or charities, BitDonate can help you do so quickly and easily. If you’re a leader in one of these organizations, though, you can only receive the money given by donors after you set up your eWallet. With CryptoDonations through DonorWERX (Powered by BitDonate), this takes just a few minutes.