Decentralized Autonomous Organizations
Here are some tips about where to look, when it comes to donating crypto. Fundraising initiatives inside the crypto economy have been increasingly leveraging decentralized approaches, such as decentralized autonomous organizations (DAOs). Endaoment, an Ethereum-based decentralized philanthropic institution, serves as an example of this. It allows you donate directly to 1,5 million nonprofits, or to create and start your own Donor-advised Fund, enabling you to perform on-chain grants to non-profits, and allocations to Endaoment-approved portfolios.
Non-Fungible Tokens
Furthermore, many non-fungible token (NFT) projects have dedicated a portion of their budget to charitable donations. Public blockchains offer enhanced transparency into the flow of funds, potentially reducing corruption and fraud, as the traceability of money remains intact until it is converted to fiat currency. However, since most charities convert crypto donations into fiat and use them to purchase goods “off-chain,” this feature has certain limitations. Furthermore, crypto donations offer privacy for donors, as no details are revealed outside of the wallet address.
Prominent Crypto-Based Philanthropy Brands
The Giving Block is a leading provider of crypto-based philanthropy, offering services to non-profits focusing on a broad range of causes. They are also partnered with Impact Index funds, which are designed to bring the greatest possible benefit to those in need by allocating donations towards the most effective projects. Additionally, no fee Crypto for Charity provides crypto donations to over 55,000 U.S. non-profits, where you can make a donation, which can be distributed to the nonprofit or cause of your choice, being the subject to applicable grantmaking policies. Daffy Charitable Funds enables support for over 1,5 and Daffy enables support for over 1.5 million organizations.
Non-Government (And Government) Organizations
A growing number of traditional charities now accept cryptocurrency donations, such as the Electronic Freedom Foundation, UNICEF, Greenpeace and the Human Rights Foundation. Furthermore, Fidelity has established a donor-advised bitcoin fund, which permits donors to give bitcoin to charity while avoiding capital gains taxes on sales, as Coinbase is utilized to exchange the bitcoin for cash. Even governments have gotten in on the trend, with the Ukrainian government being an example, launching a fundraising campaign by showcasing crypto wallets on its Twitter account.
On Their Own
Some of the major players in the world of crypto currencies run their own charities. Good example is the world´s leading blockchain ecosystem Binance, running its own Binance Charity Foundation, which has reportedly donated a staggering $25 million, in addition to an $10 million to a humanitarian relief fund for the conflict in Ukraine. In response to the COVID-19 pandemic, blockchain platform Polygon was one of several initiatives to raise money for hotspots. The Gitcoin, a platform for funding open-source crypto projects, has been actively engaging in funding rounds and matching charitable contributions. Its objectives are to develop and finance digital public goods, while also facilitating and empowering collaboration between developers, in order to construct the open web and the broader Web3 environment of the future.
Beyond Tomorrow
As you can see, options are many. The future is knocking on the doors today, providing a new approach beyond tomorrow.. Crypto-based philanthropy offers a distinct departure from the traditional methods of giving. This novel approach to philanthropy is evident in the changing donor demographics, funding models, and motivations for giving. It is becoming increasingly clear that crypto donations are here to stay, and are likely to have a long-term and transformational impact on the nonprofit sector. The influx of younger individuals into the field of philanthropy, as well as the increased access to funds for smaller charities, are indicative of this trend. Going forward, the pervasive presence of digital assets in our lives will no doubt bring about further changes in the world of philanthropy.
