How Many Charities Are Enough?
Charitable organizations around the world have long been devoted to promoting the welfare of humanity by providing financial assistance and resources to those in need. From donations to merchandise sales, philanthropists’ financial support, street fundraising, or auctions of valuable items, there are a variety of ways to generate the funds necessary to support these worthy causes. However, the challenge lies in determining which charities are truly deserving, transparent, and effective in their pursuit. What criteria or methodology should be used to evaluate an organization’s credibility and the merits of its projects? Answering these questions can be a daunting task, yet the solutions gleaned from such an analysis will be well worth the effort.
Look Out !
CharityWatch, a leading charity evaluation organization, has identified charities that meet its stringent criteria for inclusion in its Top-Rated list. These charities must spend at least 75% of their budgets on programs, spend no more than $25 to raise $100 in public support, and not maintain excessive assets in reserve. Additionally, they must meet CharityWatch’s governance benchmarks and provide “open-book” status for basic financial information and documents. Further details of CharityWatch’s rating criteria and methodology can be found on the “Our Process” page of its website. However, it is important to note that CharityWatch’s ratings should not be used as the sole determinant of a charity’s worthiness, but rather as an informative guide in making a well-informed decision.
Blockchain — The New Horizons
Cryptocurrencies have introduced a plethora of groundbreaking technological advances, with blockchain technology being one of the most fundamental. This groundbreaking technology has the potential to revolutionize a wide range of industries and services, from logistics and ecology to sports, culture, gaming industry, medicine and entertainment, etc, but also it has a profound effect in the area of charity and donations in general. It provides greater trust — receiving accurate and timely data, with confidential blockchain records to be shared with whomever the user determines to. It also enhances the security, as the validated transactions are immutable because they are recorded permanently, and no one, even system administrator can delete or change any record of the transaction.
Donating Crypto Transparently
For those who donate to charity, blockchain technology offers a secure and transparent platform for tracking funds and verifying the legitimacy of both the donations and the recipients. Cryptocurrencies offer vast potential for the future, but are also met with public mistrust due to the unfortunate prevalence of scams, and the lack of regulations to prevent them. As such, it is vital that crypto-charitable organizations take the steps necessary to build credibility, create a moral and ethical code, and educate the public on these issues. It takes sustained effort and courage to point out black practices and scams — and to consistently report, flag and highlight such fraudulent charities, as this is the only way to clean up the murky waters. An important and positive factor is blockchain technology, which enables the public to have completely transparent access to the financial flows of a given crypto-organization and thus gives interested parties oversight and control over the finances that go to a given crypto-charity on a particular project or purpose. Lack of transparency does not serve the organization asking for money. It only points out, that something isn´t right in particular.
Cryptowealth
As is often the case, the individual’s circumstances have a significant influence. There are those who, in the right place at the right time, have amassed tremendous wealth through the acquisition and hoarding of cryptocurrency, with no thought as to how it could benefit those in need. Conversely, some of the more well-endowed individuals have a more altruistic nature and are more than willing to donate part of their wealth to worthwhile causes. While some prefer to keep their philanthropic endeavours under wraps, others may opt to make their charitable contributions publicly known, sometimes as a means of benchmarking their corporate philanthropy to fulfill their obligation. Even still, there are some who are so vociferous and boastful in their charitable giving that it can be difficult to ascertain their true motives. Fortunately, in this day and age, there is no shortage of charities that accept cryptocurrency donations.
How, and to whom donate?
Assuming you already possess the cryptocurrency, transferring funds from your wallet to a non-government organization (NGO) is a common way to donate crypto. Most exchanges offer the possibility to transfer funds, and you can also use Web3 wallets such as MetaMask to do so. It is essential to avoid so-called charity scam coins, projects which claim the proceeds will be donated to a charity before absconding with the funds. Donating crypto has its own benefits, such as avoiding or reducing capital gains taxes on sales, or possibilities to deduct tax if donating to a recognized charity; however, it is important to be aware of your local legislation on these matters. Regarding the right “choice” of donation, we recommend CharityWatch website helping you with informed evaluation and preference.
