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Bitcoin’s Role in Philanthropy: Transforming Charitable Donations

Wednesday, November 29th, 2023

Bitcoin has emerged as a significant player in the world of philanthropy, offering new opportunities for charitable donations. Here are some key points about Bitcoin’s role in transforming charitable giving:

Bitcoin donations to charities: Bitcoin donations have the potential to transform the world of philanthropy. Charitable organizations are increasingly accepting Bitcoin and other cryptocurrencies as donations . For example, Fidelity Charitable, a donor-advised fund, accepts Bitcoin, Ethereum, and Litecoin . The Giving Block is another platform that allows nonprofits, charities, schools, and faith-based organizations to accept Bitcoin and other cryptocurrencies .

Tax benefits: Donating cryptocurrency, like Bitcoin, to a donor-advised fund may eliminate capital gains taxes, and the full value of the donation can support the charities of your choice . Charities are exempt from paying capital gains when they accept cryptocurrencies, ensuring that the full value of the gift remains intact .

Converting Bitcoin to fiat currency: To facilitate the acceptance of Bitcoin donations, charities often use conversion services provided by companies like Coinbase, Inc. These services convert Bitcoin into fiat currency, which can then be used by the charities for their operations .

Increasing donor base: Accepting Bitcoin donations allows charitable organizations to tap into the growing donor demographic of cryptocurrency holders. This can expand their reach and potentially increase funding for their causes.

Crypto philanthropy: The use of cryptocurrencies for charitable giving is seen as revolutionary and has the potential to transform the nonprofit sector. It enables charitable organizations to have donors globally and provides new avenues for fundraising opportunities .

Examples of Bitcoin donations: Notable examples of Bitcoin donations include Jack Dorsey, the CEO of Twitter, who donated Bitcoin to Give Directly’s Africa Response fund for COVID-19 relief . Additionally, the National Kidney Foundation has accepted gifts of Bitcoin, Bitcoin Cash, and Ethereum.