It should be no surprise that as cryptocurrency has seen mainstream adoption, charities have also taken notice!
If you are a charity looking to drum up new business, then why not take a stab at an emerging technology? These charities have done just that!
We did our research, and it turns out that besides the fact you’re doing something amazing to help others, it can also reduce your tax burden!
Since December is the season of giving, let’s take a look at five charities you can donate to with your crypto.
According to their website, 'Save the Children' believes that all children have the right to be healthy, educated, and protected. Who could argue with that?
"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.".
Save The Children was the first INGO(International non-government organizations) to accept a donation of Bitcoin in 2013 in response to Hurricane Haiyan that devastated the Philippines. In the timeline of crypto, that's pretty darn early in history.
One thing we found particularly interesting is that they accept not only mainstream cryptocurrencies like Bitcoin and Ethereum but also some NFT's as well as some unusual choices like SLP(Smooth Love Potion) from the Axie Infinity Universe.
HODL hope for the children!
Although not technically a charity, Wikileaks is an official non-profit and has been accepting the digital currency before crypto adoption was even mainstream.
Because of the controversial nature of the content on WikiLeaks, large corporations put a block on all donation money coming in - leaning on major credit card institutions to block all payments going to the controversial site. This actually demonstrated one of the first major uses and benefits to cryptocurrency - since unlike traditional money, nobody could stop Wikileaks from receiving crypto donations.
In June of 2011, they began accepting bitcoin and from 2013 to 2016, it received the majority of its funding from Bitcoin and Ethereum donations.
In October 2011, Assange said that the financial blockade of Bank of America, Visa, Mastercard, and PayPal, had cost WikiLeaks ninety-five percent of its revenue.
Fidelity Charitable is a charity organization run by Fidelity. You can choose various charities to support, so this is kind of like a 'variety pack' in the crypto charity list. I use Fidelity's debit card whenever I travel to avoid international transaction fees and have nothing but good things to say about the bank (your mileage may vary).
On the website, it goes into how donations affect taxes.
"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 (as determined by a qualified appraisal).
- Your gift to charity will be larger because instead of paying capital gains taxes, the 501(c)(3) charity will receive the full value of your contribution."
Interestingly, the company also allows individuals to donate stocks, options, and other appreciating assets as well!
Donate your crypto pre-tax!
Little Pink Houses Of Hope is listed as a 501(c)3 that provides breast cancer families with vacation retreats free of charge and has also started to accept crypto for donations.
On the website there's a button specifically for donations in Cryptocurrency. According to the website, Little Pink Hope began accepting cryptocurrency because,
"A growing number of nonprofits and charities are beginning to accept donations in the form of cryptocurrency. We believe that accepting cryptocurrency will result in donations we may not otherwise receive, as well as connecting us with new supporters.".
One thing that made us a bit bummed out was that unlike Save the Children, Little Pink Hope doesn't have very strong hands. The website FAQ asks if they hodl the crypto.
"No, we do not. We are able to convert these gifts into dollars as soon as we receive them. Our partnership with The Giving Block makes this an easy, simple conversion."
We can't blame them for liquidating immediately, as long as they are using those proceeds towards folks in need.
For those who want to make a difference internationally, SOS Children's Village (the world's largest NGO for orphaned, abandoned and vulnerable children) will now allow you to sponsor a child using Dogecoin!
From now until December 31, they will actually double any donation they receive.
According to the website, "$35 per month allows you to sponsor a child and change their life.". We're not exactly sure how much this is in Dogecoins, but it sounds great.