The world is changing, which means philanthropies and nonprofits are taking leaps forward alongside technology. These days, the financial and technological world has been captivated by cryptocurrency.
A cryptocurrency is essentially a digital form of payment. Typically, cryptocurrencies are not connected to any governing body or bank, allowing users to sell, trade, or buy them as they see fit.
Most recently, people have begun to experiment with other uses of cryptocurrencies. For example, it is not unheard of these days to find a job offering payment via cryptocurrency. Now the idea has trickled into the world of nonprofit organizations.
The crypto world hit news organizations worldwide hard when Ethereum co-founder Vatalik Buterin did something surprising. He donated approximately one billion dollars worth of cryptocurrency (shiba inu coin) to a Covid-19 relief fund in India.
Given the highly flexible nature of cryptocurrencies, this generous move was followed by a decrease in value towards the coin. This does not negate the generous action. Interestingly, it seems that Buterin was gifted the money (by the founders of the shiba inu coin), which he chose to pay forward.
Buterin’s move has opened the eyes of many, as nonprofits realize they must adapt to accepting new forms of donations. In recent years, thanks to the pandemic, many have already switched to accepting digital contributions. Now it is time to take that one step further.
There are many reasons why donors may choose to pay with cryptocurrency instead of more traditional funds. For one thing, some find cryptocurrencies to be more accessible. Additionally, the IRS has labeled cryptocurrencies as a form of property instead of currency. While that doesn’t sound like much, this changes the donations and charitable gifts regulations. Whether or not this will change remains to be seen.
What Nonprofits are Accepting Crypto Donations
One might be curious to learn which goodwill, societies, and nonprofit organizations have adapted to these new changes. As we already discussed, charitable organizations have already had to make many changes in recent years to survive the pandemic. Thus, they were already poised for further changes.
Children-centric organizations such as Save the Children, World Vision, and No Kid Hungry made great leaps this year when they accepted the digital currency. The American Cancer Society likewise accepts cryptocurrencies from donors, as does the Leukemia and Lymphoma Society.
The Water Project is another organization accepting cryptocurrencies. The Water Project aims to create easy access to clean and potable water in Sub-Saharan Africa.
Unsurprisingly, many internet and tech-based organizations now collect cryptocurrencies as a form of donation. These organizations include Code to Inspire, The Electric Frontier Foundation, and the Tor Project.