Why charities accept cryptocurrency donations
In a joint report published by Boston Consulting Group, Bitget and Foresight Ventures, it was estimated that there are over 200 million people currently using digital currencies and projections suggest this could reach a staggering 1 billion people by 2030. This rapid growth has led to cryptocurrencies emerging as a popular method for donating to charities worldwide.
As digital currencies become more mainstream, charities like Save the Children are exploring how these technologies could shape the future of philanthropy. With over 100 years of experience in championing children's rights, our pursuit of innovative solutions and desire to provide donors with the contribution options they want led us to be early adopters of accepting crypto for charity.
In fact, Save the Children US was the first international Non-Governmental Organisation to accept a Bitcoin donation in 2013. Since then, Save the Children Australia has partnered with The Giving Block to allow donors to easily support us with more than 100 accepted cryptocurrencies.
Benefits of donating cryptocurrency
Giving a gift of crypto confers several features of blockchain technology to donors that could redefine the future of charitable giving, such as faster transactions, tax efficiencies, and enhanced donor privacy.
Firstly, crypto transactions are almost instant and hassle-free with The Giving Block’s easy-to-use interface, allowing donations to be completed in minutes. Secondly, there can be significant tax benefits for donors, such as deductions due to Save the Children Australia’s status as a deductible gift recipient (DGR). Additionally, donors not interested in potential tax benefits have the option to remain anonymous, providing privacy that isn’t always available with traditional donations.
Addressing common concerns about crypto donations
As with any emerging technology, there are concerns about cryptocurrency donations regarding their safety, environmental impact, and usefulness. To address these, Save the Children processes all crypto donations through The Giving Block, who secure transactions with advanced measures that include scam mitigation, account security controls, customer verification, account takeover mitigations, and secure data management.
Environmentally, the carbon impact of each donation is offset by The Giving Block annually, though the shift of cryptocurrencies like Ethereum from Proof of Work (PoW) to Proof of Stake (PoS) has reduced energy consumption by as much as 99.84% so choosing to purchase and donate more ethical and sustainable cryptocurrencies can also have a big impact.
Another concern we’ve heard is that the potential volatility of cryptocurrency and comparatively little ways of spending cryptocurrency may make these donations less valuable, thankfully this isn’t the case. Once your donation is received, The Giving Block liquidates the cryptocurrency into dollars and immediately sends them to Save the Children. This means your contributions retain their value at the time of donation and allow Save the Children to access and deploy funds faster than many other contribution methods for lifesaving emergency response work and our ongoing programs.
Donate today and be a part of the change
Traditional donation methods are still an important and effective way to support our work but as the world of finance evolves, so too does the landscape of philanthropy. Cryptocurrency donations represent a bold step toward a future where giving is faster, more secure, and accessible to a broader range of donors.
Explore more ways to give and be a part of this change by contributing your cryptocurrency today to create a lasting impact.