You have probably heard about the many benefits of donating through cryptocurrency. It’s fast, easy and anonymous. You don’t have to give up your personal information, which is especially important if you’re donating to a charity that has been hacked recently (see: The Red Cross or Charity Water). If you look into it, there are numerous advantages to donating through digital currency — from tax advantages to ease of use. In this article, we will go over some of the benefits of making charitable donations through cryptocurrency and how you can do so as well. Here you can find more information about donating crypto.
Easy and fast
One of the biggest advantages of cryptocurrency when it comes to charitable donations is how fast it is. You can send money anywhere in the world instantly, without having to go through a bank or credit card company. You don’t have to fill out forms or wait for a check to be processed — you just send the money and it arrives almost immediately. You’re also able to track your donation as it makes its way to the charity. You can see where it is in the process and how long it will take for it to arrive. These two factors — speed and tracking — make it easier to see the impact your donation has made.
One of the biggest advantages to donating through cryptocurrency is the anonymity. The reason for this is there are no personal details required when you donate — just an address where you want your charity to send the money. This anonymity makes it difficult for the charity to contact you if they would like to ask for more information or would like to thank you. There are ways to donate through cryptocurrency that allows you to keep your information private. These include donating through a cryptocurrency exchange or with cryptocurrencies that are designed to be private, such as Zcash or Monero.
Cryptocurrency is considered a capital gain, as you’re buying and selling an investment — and thus you can deduct the donation from your taxable income. And if you’re donating to a nonprofit, there are certain types of donations that can be deducted from your taxes immediately. While the tax benefits of donating through cryptocurrency are different depending on the country you live in, cryptocurrency offers a significant tax advantage over other types of charitable giving.
Confidence in your donation
Another major advantage of donating through cryptocurrency is confidence in the fact that your donation is being put to good use. The organization you are donating to has to be transparent with their finances, which means donors can see exactly where their money is going and how it is being used. It also makes it easier to hold the charity accountable if they are not using the money in the way it was intended. Find out how you can donate crypto to Make-A-Wish here.