The adoption of digital currencies is a fundamental resource to be able to contribute to NGOs. The reason is that this type of asset makes it very easy to transfer money through donations, thus allowing the international economy to be boosted without borders and without setbacks.
You may have heard that the Ukrainian government is accepting donations in cryptocurrencies . Unfortunately, scammers know this too, and many have gone “on the hunt” through social media ads or emails to trick people into sending them money.
For this reason, it is very important to make these donations directly on the official website of the organizations or through an endorsed entity. And today there are already several companies working for charitable foundations to incorporate cryptocurrencies, dedicated to raising cryptocurrency funding safely, as is the case with BitHope and BitGive.
On the other hand, the self-custodial multiblockchain crypto wallet Xcapit recently added a new feature to its wallet: the possibility that the user can make a donation in crypto to an NGO or foundation within a portfolio of possibilities, associated with The Giving Block – online platform that allows non-profit organizations and charities to accept donations of digital assets, which helps to overcome local barriers and thus be able to take from there the most representative causes to be able to exhibit them to potential future donors.
This functionality is built within the framework of the UNICEF Venture Fund program for investments in solutions towards financial inclusion. With this, the donations module aims to contribute to general social welfare by taking advantage of decentralized financial instruments.
A recent survey suggests that nearly half of surveyed crypto investors donated the equivalent of $1,000 USD or more to charity in 2020, compared to just a third of the general investor population.
Furthermore, according to The Giving Block, for the first time, Ethereum (ETH) was the most donated cryptocurrency in 2021, with a total of $30.79 million USD in donation volume. Previously, Bitcoin (BTC) had been the cryptocurrency with the highest volume of annual donations.
How to make a donation?
The user enters the app and then goes to the “Donate with crypto” section. Once there you will be able to see a list with all the NGOs where you can see the name and the corresponding category. Then, the user will be able to place the number of tokens they want to send to the selected NGO.
Among the causes that appear to make donations, are:
- Support to help ensure that Ukrainians who have been forced to flee their homes are protected and safe.
- Donate to Water.org to train vulnerable people in the care of water use, and provide them with access to affordable micro-loans for water and sanitation solutions in their home.
- Rescuing tropical forests by buying property is threatened by the actions of man.
- Make donations for training and microloans to help survivors of sex trafficking around the world start micro-businesses.
- Offer a crypto finance educational program and fund the transaction fees and deposits required to join the Proof of Humanity platform.
“This new functionality in alliance with The Giving Block is a new bridge towards financial inclusion. It is a pride to be able to use the benefits of blockchain technology in this era of the digital economy to help those who suffer and need the most. Our goal is to create a lasting social and economic impact, focusing on education as one of the main contributing factors to reduce access barriers to financial freedom”, commented José Trajtenberg, CEO of XCapit.
Why are NGOs turning to cryptocurrencies?
According to The Giving Block, by the end of 2021 more than 1,000 NGOs began accepting cryptocurrency donations, and the numbers show that cryptocurrency fundraising is no longer an anomaly or a mere curiosity.
The reasons nonprofits decide to accept donations in cryptocurrency can vary. In some cases, they are motivated by the donors themselves, but also by issues such as the COVID-19 pandemic that catalyzed the search for new sources of income.
Cryptocurrencies have been viewed by many nonprofits as the next logical step in fundraising innovation that also creates a tax incentive to donate.
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